Restructuring of derivative positions

Chris · 2025-12-02T18:55:21.565442Z

It goes on. Bought another boring normal warrant today on $PGR .

Wiktor_06@Wiktor_06

11Lun

What kind of lever?

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Klein-Anleger@Klein-Anleger

11Lun

@Wiktor_06 approx. 14 mm lever

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Wiktor_06@Wiktor_06

11Lun

@Klein-Anleger1 Holy shit. That's crass

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Chris@Multibagger

11Lun

@Klein-Anleger1 That's not quite right. The stated leverage of 14 is only that high because of the premium and time value. However, since these fall as the remaining term decreases, the delte is more decisive for normal OS. Here we are at around 7.

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Wiktor_06@Wiktor_06

11Lun

@Multibagger and why are you going in with a warrant and not with a 7 leverage derivative?

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Klein-Anleger@Klein-Anleger

11Lun

@Multibagger ah ok, just listened to what Onvista displayed 🙈

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Klein-Anleger@Klein-Anleger

11Lun

@Wiktor_06 because there is no knockout with OS, at least not before the end of the term...
At least I think so

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Chris@Multibagger

11Lun

@Wiktor_06 In the more turbulent times, I like to use derivatives without KO and with a medium-term maturity. I tend to use derivatives with KO for short-term trades and large fluctuations, pullbacks or dips with leverage.

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Wiktor_06@Wiktor_06

11Lun

@Multibagger Aso, thank you for the perspective

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Chris@Multibagger

11Lun

@Wiktor_06 gerne

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Mi11@Migu11

11Lun

@Multibagger How do you approach this in your project? Regardless of the individual positions. Are your trades getting bigger and bigger now? So I can imagine that you started out with 3,000 budget trades in the 100 euro range and now sometimes 2,000 or 3,000? Or even more if you find a hot stock?

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Chris@Multibagger

11Lun

@Migu11 No, it remains at a maximum of 2%. of the custody account volume for derivatives.

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Chris@Multibagger

11Lun

@Migu11 I would be happy to explain the strategy behind it. I have a hit rate of around 70%/30% in the derivatives area. This means that for every 10 trades, I sell around 3 at a loss. Of these, on average one with a total loss, 2 with an average of 40%. Of the 7 others, 2 are at 100% or more, 3 at an average of 50% and the other 2 at 25%.
If I bet 1.5% per trade, I lose around 2.7% with the losing trades and around 6.0% with the winning trades. This means a gain of around 3.3% on the portfolio volume. However, this only works if I use roughly the same percentage for all trades. Deviations only occur if I buy more in some cases.
As I achieve these ratios relatively consistently, total losses are also part of my way of trading.

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Chris@Multibagger

11Lun

@BockaufDividenden yes, sometimes a few brain cells still work even at my age.😂😎

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Chris@Multibagger

11Lun

@BockaufDividenden it just has very low SL. Usually around 60%.

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Chris@Multibagger

11Lun

@BockaufDividenden I do it in a similar way

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Superbla@Superbla

11Lun

How do you calculate until when an OS should "run"? For example, the OS runs until 06/26 and goes sideways for a few weeks. When is the cut where you say it won't make it anymore if it doesn't explode? Thanks for a quick tip

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Chris@Multibagger

11Lun

@Superbla It depends on how far out of the money the bill is, i.e. below the underlying asset, and what the general market situation is like. If the overall market is negative and the note/share is holding up, there is a good chance that it will outperform when the market turns. Otherwise, I would sell it quickly. In general, however, I always sell the bills after 3-4 weeks if I have high yield expectations and the share has to rise sharply if it is then in the red. I buy a lot of shares when I think the stock is on the verge of a breakout or strong momentum. If that doesn't work out, and I know that after 3-4 weeks, I close the position.

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Superbla@Superbla

11Lun

@Multibagger thanks for the quick info! That's more or less how I do it. I have a 20-day limit....

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