The life of a trader, generally, unless you happen to work in an office with a Prop. firm and other traders, pretty isolated. I write this blog, largely for a bit of interaction with other traders, and also to prevent myself from over-trading.
So when I spoke in Auckland the other night, it was actually very refreshing to get questions on the presentation, as they highlighted areas that other’s were interested in, when I may have, and in many cases thought that there wouldn’t be too much interest.
As a result, I’m going to make some changes in the newsletter that became quite apparent, would be of interest. Basically the various independent calculations that I perform, that form a large part of the decision and recommendation that I make in the newsletter each week, one of which is an analysis of the COT data.
A second lesson is that Options are still a bit of a mystery to many. The problem with Options is that you have to first get an understanding of the basic greeks and their purpose. This isn’t straightforward. From there, you need to understand the basic strategies, and here the problem is that there are lots of strategies. I use pretty basic strategies, simple here is better in my book.
So in the newsletter, the trade of the week, which is an Options trade, in the Weeklies, will detail the strategy, and various issues. On the blog, I’ll periodically address various issues around the greeks. IV crush was one issue that was raised. A good and valid point, but one that can be managed.
Contango/Backwardation are techniques of analysis that I use. There wasn’t enough time to go into a detailed breakdown of the fundamentals in this, so again, I’ll include the analysis in the newsletter, and possibly explore some of the theory on the blog.
Overall, it was a good night. I was made to feel very welcome. Considering I spoke for 2hrs, and no-one actually fell asleep, I take as a positive. I enjoyed myself, I don’t often have a captive audience prepared to listen to stockmarket based discourse, so it was very refreshing to be amongst one’s peers.