11H
How now? Max return $366 with max risk $10547?
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@Epi when NVDA falls to 0. So this is more of a theoretical nature. But ultimately that is the possible max. loss.
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@RenteRenditeReisen So you work without SL?
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â˘@Epi no! But my stop is not the risk in the position. I plan to react at -200%. So approx. -722 USD this also corresponds to another key fact in my trading plan ... max 2% loss per position on the portfolio value (currently 40k for me). So these are my set losses BUT if NVDA goes bankrupt today I have to buy 100 shares at 110 USD, can keep the premium and thus come to the almost 10.6k risk. I leave the probability of this happening to everyone to determine for themselves đ
Whether I manage the trade after this stop scenario depends on the situation and duration of the trade! We have the earnings in the middle, so I may decide to roll the 110 SP beforehand. Or we could rise to the Esrnings and then fall to around 100USD, in which case I would actually be happy to sell and have the position booked out again using call options...
I manage a trade with a "toolbox" and not just according to a fixed scenario. That's ok too, of course, but not my way
Thanks for the very good question on this topic
Whether I manage the trade after this stop scenario depends on the situation and duration of the trade! We have the earnings in the middle, so I may decide to roll the 110 SP beforehand. Or we could rise to the Esrnings and then fall to around 100USD, in which case I would actually be happy to sell and have the position booked out again using call options...
I manage a trade with a "toolbox" and not just according to a fixed scenario. That's ok too, of course, but not my way
Thanks for the very good question on this topic
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â˘@RenteRenditeReisen Thanks for the detailed explanation! But somehow I still don't understand it. Opportunity 366$ and risk -722$? Still sounds to me like a CRV that should be the other way around.
How do you keep the probability on your side?
How do you keep the probability on your side?
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@Epi Probability is another issue in options trading. The trade has an 83% max profit expectation! An earlier exit increases these odds in my favor. An earlier SL, of course, makes it negative. So I expect significantly more winning trades than losing trades and in total there should be some cash flow left over at the end of the year.
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â˘@RenteRenditeReisen Another question out of interest: what are custody account turnover and trading costs p.a.?
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@Epi not to forget, NVDA is at 130 and I get the profit if we close above 110 on 21.3. so the price may rise, stagnate or fall moderately
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@Epi I paid USD 2.17 in fees for yesterday's trade. The same is charged again when the position is closed. So in this example, about 1.5% of the premium received. I will be happy to provide the exact figures at the end of the year. Or I will include the fees in the monthly reports
What do you mean by portfolio turnover?
What do you mean by portfolio turnover?
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@RenteRenditeReisen Thank you! That works with the costs.
By portfolio turnover, I mean what % of the portfolio volume pa is turned over.
By portfolio turnover, I mean what % of the portfolio volume pa is turned over.
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â˘@Epi for my 3 current trades I currently have an initial margin of 15k measured from the total portfolio almost too much, but ok with my set of rules.... Still
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