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heech, thanks for pointing that out. I've come across that also in my reading yesterday although I skimmed through it and do not understand how that works yet. I'll go read up on that, then I'll read the static hedging paper again and get back to you. thanks. Quote from heech: hlpsp, The paper talks at length about delta-hedging. If you've looked at how Black-Scholes is derived (or at least one of the more common ways, and...

Quote from christianhgross: That is why in the original post I questioned selling 1.46 puts since I am not even in 1.4 range... Puts below 1.4 are so cheap that they are not worth selling. I would rather sell put spead then short those puts. The reason I closed out my naked puts was because I completely forgot about the news regardng Greece/Spain/Ireland when I initiated those trades.

Quote from rmarvin001: It seems if you were to only hold for a week or two, through an earnings release where the IV would theoretically drop rather steeply, you would be in a position to realize limited loss. If you're going to play volatility contractions via earnings announcements, you might consider selecting positions that achieve that better. AFAIK, reverse positions (single and double calendars, diagonals etc.) are more more...

Thanks Hlpsg, I think anything we follow has the potential to show us the right path.. or the wrong path. The difference is if we blindly follow or if we sit back and evaluate past cause and effect. I agree that bad habits or thought process's can arise from following a bad lead.. This is primarily why I was looking for a list w/ a reasonable track record. We all know that stuff can move against us w/ really no GOOD reason.. earnings...

Quote from hlpsg: which page is this? perhaps we can look at it together and shed some light on it. I believe this is on page 8, the section where they're discussing the proof of their theorem, and the context of the proof.

Quote from ramaTrade: Puts below 1.4 are so cheap that they are not worth selling. I would rather sell put spead then short those puts. The reason I closed out my naked puts was because I completely forgot about the news regardng Greece/Spain/Ireland when I initiated those trades. Ok, that I can understand. If you play it close to the vest in terms of value, yeah I can understand how you would not want to play naked. That would be simply way...

Quote from Jerryflyguy: Trader, have you used the ToS to paper trade? she doesnt trade. she trolls et spouting how trading is stupid => all traders are doomed losers. 6000+ posts of the same spew. lifeless, emotionally unstable. sad situation

Thanks for the note hlpsg. It is a very small account so I'm not too worried about major losses and I'll be following it closely. I have my main trading account using the same strategies (not taking the same trades though) so I'm hoping to use it as another source of data to study. BTW, I was just reading the early part of your old thread talking about Dan Sheridan's mentoring service. I hope that is still working out for...

Quote from Jerryflyguy: Trader, I think I follow, but can you expound a bit more.. why would success [or lack of a significant loss] in paper trading be not concidered as a success in general terms? a large number of reasons. You will find serious traders here pretty much saying that paper/sim trading is only the first step in a long line. But a few of many reasons it is not success: 1) a few months is way too short. Most newbies/paper...

Quote from ramaTrade: At the time you are assigned, the calls you try to sell will look so cheap that you might change your mind about selling them. Also remember the reason you sell puts is because you are somewhat bullish on them to begin with. So what you just described is one of those trades that sound fine on paper, but really work in the real world. I sell puts on stock instead of buying it because I cannot guess the best price. At...