| cwang |
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Gold User, Member, TeleChart
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| Registered User |
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| Unsure |
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| Monday, July 18, 2005 |
| Thursday, September 28, 2006 12:27:04 PM |
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HI RMR:
Thanks for sharing your knowledge, but I have to say this strategy is not one strategy.
What you are really doing here is making two positions, and they have nothing to do with each other.
Your first position is the 2 calendar positions (2 or 1 don't really make a big difference). with the calendar positions, you are trading the volatility, and being direction neutral.
Your second position is this one extra long call position. You are trading with bullish direction. Technically speaking, the second position is volatility bearish position, and combined with a volatility bullish calendar spread, you can make a valatility neutral position to just long without the fear of losing value while holding them. However, you are putting a lot of strength in the calendars to make sure you also make money on volatility.
At the end, these two positions are not hedging each other, therefore, they are really two seperate strategies trading on their own, one is trading vol, another one is trading direction.
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oops, I meant a gamble if you trade it, doesn't matter long or short.
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What makes you think Sina looks good?
Stochastics are in no where. There was a gap up. A big downward candle on high volumn. It's more like a gamble if you long this position.
Just my two cents
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