Click on image to expand it.
Less than two months later, the account has grown 25% with 8 trades, 6 of which varied in profit from $800 to $12,155. Only two stocks where losers, one -$125 and one -$140.
Click on image to expand it.
I have shown you in my DVD's exactly how to select candidates, how to place the order and how to rollover, or take profits. Even if you find that this was a lucky occurrence, you have the opportunity to examine each trade, and follow it yourself, with my reasoning and explanations for each move, including the exit of the losers. All you need to do is to send me an e-mail, requesting the DVD collection. The cost is minimal and merely covers cost of production and shipping. I am not charging anything for my services.
Why would I do this? because I have complete confidence in my ability to produce the money I need with my own trading. Because I want to share my knowledge with you and exchange ideas. You have seen some of our friends posting their own observations. But most of all, I want to make a contribution to you and others out there, and to generate good will. I really don't think that I could honestly keep my observations objetive and honest if I were to charge money for my knowledge. I don't think anyone can. I would start overselling my skills and the easy with which one can make money in the market.
Therefore, I want you to simply PAY IT FORWARD, by doing something big for someone that cannot do it for himself or herself and it turn ask them to pay it forward. Do this for at least 3 people, and contribute to spread good will to make the world a better place. I am positive that you will too, be rewarded with big profits in your trading.
Please send your requests to Paperprofit1@gmail.com.
4 comments:
Juan,
We are all very convinced of your PCRCC.
Look at the recent paper trade account, your account has grown 25% in two months. You have said before you look for about 25% return in one year but you managed to achieve it in 2 months. I feel that it is significantly due to huge vega increase over last 1 month. For example, in the case of CMI and NVDA, IV has increased of 15-20%.
Three greeks are very important for this PCRCC strategy, delta, vega and theta. As we have more buy contracts than sell contracts, theta is against us, so we will need to have either delta or/and vega on our side.
The skill to pick winners is important.
How about revisit some of the past trade candidates ?
For example, the following stocks have been traded recently and the IV has dropped sigificantly recently :
1) AAPL IV mean 35%
2) HUM IV mean 26.5%
3) NVDA IV mean 40%
4) DNA IV mean 18.7%
5) GOOG IV mean 20%
(IV mean from ivolatility.com)
Does it make any sense to reenter them ? Of course, it will be good to relook the entry consideration before.
Chiu
Let me respond with a metaphore if I may...
I recently had the visit of my mother after years of not seeing each other. I noticed that in the kitchen she tended to "eye-balled" the amounts of salt, sugar, etc. The same could be say of the times in the oven, etc.
I come from a scientific background and have worked in labs sufficiently to know that a deviation of grams in the amount of ingredients can ruin an experiment. So I am used to follow directions to the letter. I have taken that experience to the kitchen and in general I would say that I get consistent results, unless I decide to experiment.
There is nothing wrong with trying new approaches, I do it all the time, but you have to understand that you are in what I would call "investigational mode".
You can place trades on AAPL, HUM, NVDA and GOOG (not DNA) under the "high flier" guidelines. This are a bit more specific. Pay special care on the front month and back month IV's and in the IV/SV ratio. Watch out for the earnings report dates and follow my instructions to the letter.
Don't be surprised if the indeces resume the down course with another jump in volatility, in fact I would recommend that you act accordingly.
Finally, Theta IS working for you. It is what allows us to place a straddle months in advanced of expiration, an approach that would be prohibitively expensive otherwise.
Also, as the day to expiration approaches, Theta decay would allow you to exit the trade at a small profit if the stock moved sideways, close to your strike price.
From my perspective Theta, Vega and Delta all work in your favor.
Juan,
I have the following questions on IV/SV Ratio check :
1) Do we need to conduct the IV/SV Ratio Check for all the methods ? You introduce this in the Method 3 high flyers on IV skew method.
2) We use the short term timespan for this IV/SV ratio right ? In the Optionetics Platinum, use SV denominator of 6 day and IV numerator of 7-149 day. Could you share the rational of using the term ratio.
Chiu
Sure Chiu:
1. The IV/SV ratio is most critical when selecting high fliers. The SV is the movement of the stock price itself, so if the IV is lower than SV, then it is low enough! so-to-speak. What we are doing here is use a relative marker that would tell us if we are dealing with a momentum stock or not. We want high fliers that could move strongly in either direction.
This is not so important when dealing with the "skew IV" method because we know that the IV we are selling is high in comparison with the one we are buying. The SV plays no role here.
The post-earnings jump, implies a high SV because the stock has jumped 10%, so SV is high. So all we need to know is that IV is >40%. It is almost a given that the IV/SV is going to be low, but you may verify that if you wish.
2. The SV is the volality of the stock. The Volatility of the stock a month ago, has no relevance. Jacobson would tell you that the Volatility that really counts is that of today. TOS would give you the SV for the last 2 days. Platinum defaults to a minimum of 6 days, no less. I believe that this is probably good enough.
For the IV we want to estimate all strike prices, not just the shortest to expiration. Remember that we are buying back month, so that may be all you need. If you include all strike prices then you get the overall picture.
Post a Comment