Hi Dan,
In this forum and in many other forums great ideas are shared. We need a hint or an idea which we can adapt and develop further...something like sell futures/cover puts so as to make the total position delta neutral when the market moves in any direction....or something else....
I am sure such a method can evolve if people like you who are knowledgeable in options can share their ideas......look forward to inputs from you and other option traders.
Enjoy...
ST
Hi dear ST
Got your point and your points are always coming from a gentlemen s behavior. May I ask: But isnt it like that that even big boys many times not exactly know how to reduce there risk? Wouldnt it be like this that posting some of the never ever published ways of trading would just mainly play in there hands with out having to pay for that kind of knowledge?
Dear Jamit_05 is playing a long synthetic call and then reducing his lots step by step after certain moves. That is how I understand the idea behind the post. Please correct me when I did wrong. His analyzing picture looks some how like that and is under the zero line
http://www.theoptionsguide.com/synthetic-long-call.aspx
The idea is advanced and surely not comes from a beginner. Even than: Why should I keep puts for that long when market moves up?
Why should I keep a position in my depot which I see only loss? I do not like much risk, so I am a very risk adverse trader, but why keep the puts for so long? Why not let them go as market moves in the favorite direction?
Why not just set a stop loss for the future calculated on the profits made until now? At the moment market plunges, the loss on the future will be bigger than the profit on the long puts.
Holding long puts the way it is explained here, is in my personal way of valuing the idea to expensive, as they are atm. A better way to do so would be to buy long puts with a lower delta. You even could add a third leg, but that would be an other topic and would match the picture I showed, which is exactly at and not under the zero line and would be for a downtrend.
Just some out of the box comments for an advanced way of trading the synthetic long call strategy.
Good trading / DanPickUp