Prop trading - is it a scam or is it good? - page 16
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Sber, today, traded at a delta of ~320
Now it's trading at ~410.
I'm trying to get him with a delta of 432.
You got it already? There's already a delta of 500.)
But the delta from 12.19 is more impressive.
Sber, today, traded at a delta of ~320
Now it's trading at ~410.
I'm trying to get in with a delta of 432.
It turns out it is not certain that the bid will work, but if it does, the entry will be good.
It turns out that it is not certain that the order will work, but if it does, the entry will be good.
On the close futures of Sber 09.19 there is no problem with order triggering +/- 2 p. you can always take it if the price is close to the market price. If not, you can wait until the carrot's gob).
On the close futures of Sber 09.19 there is no problem with order triggering +/- 2 p. you can always take it if the price is close to the market price. If not, you can wait till carrot shit).
:)
Got it already? There's already a delta of 500).
Except that so far (it's been 30 min) this delta can't be taken, although the stock is dropping.
Conclusions/observations:
1. the stock opened with a gap up after a strong upward move in the futures on the evening;
2. Futures are now falling faster than stocks (catching up);
3. The strategy is not likely to be negative, but it could have failed to catch the desired delta today if the market opened with a gap up (as it did) and continued rising. In this regard, it would be more logical to collect the delta sequentially.
4. If you catch delta = 500 today, potential profit (without commissions) = 13.5% p.a. on EBS EIS.
Added:
5. The gap has closed.
Except that so far (it's been 30 min.) this delta cannot be taken, although the stock is falling.
Conclusions/observations:
1. the stock opened with a gap up after a strong upward move in the futures on the evening;
2. Futures are now falling faster than stocks (catching up);
3. The strategy is not likely to be negative, but today the market would not have caught the necessary delta had it opened with a gap up (as it did) and continued rising. In this regard, it would be more logical to collect the delta sequentially.
4. If you catch delta = 500 today, potential profit (without commissions) = 13.5% p.a. on EBS EIS.
Added:
5. The gap has closed.
Alexei!
On your 1 point - totally disagree.
The price of futures depends on the price of the stock, NOT the opposite!
And who said there was no risk?
There is, but not much, I bought the shares dearly (delta 282 rubles), which amounted to 7.2-7.3% per annum in this transaction.
And don't forget that the futures are sold one day before expiration day.
The delta today is already less than 300.
Therefore you have to buy in small portions.
In the long term it is more than you can enter when the stock is trading.
Added
Try to think not in terms of where the market will go, but in terms of
How to make money WITHOUT RISK!
Alexey!
On your 1st point, I completely disagree.
1. The price of futures depends on the price of the stock, NOT the opposite!
2. who said there is no risk?
3. there is, but not much, I bought the stock dearly (delta 282 rubles), which amounted to 7.2-7.3% p.a. in this transaction.
4 And don't forget that the futures are sold one day before expiry day.
The delta is now less than 300.
5. So you have to buy in small portions.
6. In the long term it is more than entering when the stock is trading anyway.
Added
7. Try to think not in terms of where the market will go, but in terms of
How to earn WITHOUT RISK!
Point by point:
1. I'm not arguing, I'm just stating the existence of a gap in the morning. You see the gap of 120 points, don`t you? Consider it just an observation.
2. Believe me, I am aware that there is risk everywhere. Absolutely everywhere, especially in the market. Although I didn't mention the risk here at all, I just said that the estimated delta may not be caught.
3. About the position set sequence I also said. By the way, did you fully expect the gap to close today?
4. Does it really matter? You are selling the futures to buy the stock at the previous day's closing price, right? In fact, you could have waited for the stock price to go down even more today and bought at an even better delta;
5. I agree;
6. I don't disagree; 6;
7. I think it's inseparable to think about market movements and think about earning with LOW risk. In this case, I know this: if the stock goes up with the futures on the open today, the stock should be bought headlong (otherwise you could go into negative territory if the stock price reaches the futures entry), and if the stock price starts to fall, that's good for me.
On points:
4. Does it really matter? You're selling the futures in order to buy the stock at the previous day's closing price, right? In fact, you could have waited for an even bigger drop in the stock price today and bought at an even better delta;
7. I think it's inseparable to think about market movement and think about earning with LOW risk. In this case I know that: if the stock price goes up with the futures at the opening today, the stock should be bought headlong (otherwise you can get into negative territory if the stock price reaches the futures entry), and if the stock price begins to fall, it will be good for me.
4. it matters, because the next day, the delta will be much smaller and the percentage is almost the same,
as long as the stock doesn't go up.
Delta, on expiry, = 0.
Look at this screen and above, the deltas are the same and the percentage of entry is higher
7. Who cares, in hedging strategies, which way the price goes.
What matters is the entry and exit delta.
You can just buy Delta while trading stocks, without any risk...
"Cast the line at 10.9%" and sit back and wait for the bite.
Added by
Therisks in this strategy (the strategy itself) = 0
No need to talk about disconnecting the Internet at the time of the return trade...
or any other risks not related to the strategy!
4. it matters because the next day, the delta will be much lower and the percentage will be almost the same,
assuming the stock doesn't jump up.
Delta, on expiry, = 0
Look at this screen and above, the deltas are the same and the percentage of entry is higher
7. Who cares, in hedging strategies, which way the price goes.
What matters is the entry and exit delta.
You can just buy Delta while trading stocks, without any risk...
4. Yes, I get it, the later you buy the stock, the better. By the way, do you take into account when calculating your returns that you start owning the stock after 2 days (T+2)? That is, in fact, you can still "spin" the money (on the stock) somewhere for 2 days after the purchase?
7. Why don't you care? You do realize that had the price gone up today, you could have taken a loss (if you had bought the stock above the futures), right? And you would have hedged the minus! The point here is that the delta itself is our "safety cushion" and the higher it is, the better. The higher the yield. The point of the strategy is to catch a good delta, with a yield above the OFZ/bank deposit.
You can just buy Delta while trading stocks, with no risk...
There you go again, saying that there is no risk. You yourself wrote in a previous post the phrase"Who said there is no risk? There is a risk of getting the wrong delta (yield). The example was today at the market opening for the Sber.
Added:
Risks in this strategy (the strategy itself) = 0
4. Yes, I see, the later you buy the shares, the better. By the way, do you take into account when calculating the yield that you start owning shares after 2 days (T+2)? That is, in fact, you can still "spin" money (on the stock) somewhere for 2 days after the purchase?
7. Why don't you care? You do realize that had the price gone up today, you could have taken a loss (if you had bought the stock above the futures), right? And you would have hedged the minus! The point here is that the delta itself is our "safety cushion" and the higher it is, the better. The higher the yield. The point of the strategy is to catch a good delta, with a yield above the OFZ/bank deposit.
There you go again, saying that there is no risk. You yourself wrote in a previous post the phrase"Who said there is no risk? There is a risk of getting the wrong delta (yield). An example was today at market opening on Sber.
There is a risk if you buy overnight