Being long, you can win two ways. You can profit off your scalp from the underlying hedges, and you can sell your premium if it goes up more than the loss in dirextional underlying.
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thinking out loud here...
trump gets acquitted, dow surges, then stack puts on USO?
is there a tool online where i can simulate what would have happened if i attempted a Weird Straddle at some arbitrary time in the past?
eg i enter a call placed on Jan 1 for market value strike price + 20% on Ford for a feb 7 call or whatever, and another put for strike price -20% on Disney, same date / duration. and i want to see what sort of profit/loss over time it generates?
if not ill write one but id rather not re-invent the wheel.
Option Alpha has a backtest program that I hear is pretty good but there is a cost to use. It's expensive but less I'm sure than what you lost on those TSLA puts. ;-)
https://optionalpha.com/members/options-backtesting
i found some open source / python packages that do similar things and a website thats offering API access to historic data for stocks/etfs/etc. quite cleverly they appear to have one account tier that does stock historics and another that does the etf historics, but even if i get both its less than $100 a month, so im likely going to take the plunge.
if i get this shit up and running ill let you know.
interesting:
aniki:~$ python3 test.py
Date Open High ... Close Adj Close Volume
0 2007-01-03 12.327143 12.368571 ... 11.971429 10.416352 309579900
1 2007-01-04 12.007143 12.278571 ... 12.237143 10.647548 211815100
2 2007-01-05 12.252857 12.314285 ... 12.150000 10.571726 208685400
3 2007-01-08 12.280000 12.361428 ... 12.210000 10.623935 199276700
4 2007-01-09 12.350000 13.282857 ... 13.224286 11.506466 837324600
... ... ... ... ... ... ... ...
2513 2016-12-23 115.589996 116.519997 ... 116.519997 111.307320 14249500
2514 2016-12-27 116.519997 117.800003 ... 117.260002 112.014214 18296900
2515 2016-12-28 117.519997 118.019997 ... 116.760002 111.536598 20905900
2516 2016-12-29 116.449997 117.110001 ... 116.730003 111.507927 15039500
2517 2016-12-30 116.650002 117.199997 ... 115.820000 110.638626 30586300
its unclear why it truncated it to 5 entries from either direction tho.
im going through the source code in /usr/local/lib/python3.7/site-packages/yahoo_historical/fetch.py and not seeing anything that would dictate that behavior which makes me think, sadly, this is a yahoo side deprecation.
will tuck in regardless, nice catch and thank you.
edit.. holeup. changed it to an ETF and adjusted dates for 2020,1,1 -> 2020,2,1 and suddenly..:
aniki:~$ python3 test.py
Date Open High Low Close Adj Close Volume
0 2020-01-02 12.80 12.85 12.70 12.81 12.81 12509100
1 2020-01-03 13.27 13.32 13.03 13.18 13.18 34603600
2 2020-01-06 13.30 13.32 13.12 13.16 13.16 20787300
3 2020-01-07 13.10 13.18 13.01 13.13 13.13 13936600
4 2020-01-08 13.06 13.07 12.39 12.66 12.66 55347400
5 2020-01-09 12.45 12.54 12.29 12.49 12.49 27515600
6 2020-01-10 12.43 12.48 12.34 12.41 12.41 16134000
7 2020-01-13 12.31 12.31 12.16 12.20 12.20 22868200
8 2020-01-14 12.27 12.32 12.20 12.28 12.28 18693700
9 2020-01-15 12.20 12.22 12.05 12.18 12.18 15054100
10 2020-01-16 12.20 12.36 12.20 12.29 12.29 15686500
11 2020-01-17 12.33 12.37 12.24 12.33 12.33 17766100
12 2020-01-21 12.22 12.34 12.21 12.24 12.24 13677100
13 2020-01-22 12.03 12.04 11.88 11.90 11.90 25571700
14 2020-01-23 11.60 11.71 11.50 11.66 11.66 30868200
15 2020-01-24 11.49 11.50 11.31 11.43 11.43 24408200
16 2020-01-27 11.11 11.24 11.02 11.10 11.10 25140700
17 2020-01-28 11.16 11.32 11.11 11.25 11.25 24389600
18 2020-01-29 11.28 11.29 11.09 11.16 11.16 21763800
19 2020-01-30 10.93 11.09 10.85 11.08 11.08 29517200
20 2020-01-31 10.88 10.98 10.70 10.84 10.84 32402900
thats fucking dope dude.
chinese stock exchange is banning shorts as of feb 3.
hot fucking take alert:
UAL is down something like 21% since 11/19 and I think it could lose another 30% in the next 12 weeks. its extremely exposed to coronavirus impact and a market thats starting to demand more than the current fed injections to stay buoyant.
weekend spread says the market likes what china's cooking vis a vis containment/response so we might see a big recovery from the bath of blood last week but it aint gon' last.
37 minutes until shanghai opens.
https://www.bloomberg.com/news/artic...lms-virus-fear
everything's going to be fine guys, the china stimulus package has this thing on the run.
7 minutes until ammunition, antibiotics, and insulin start to become the only forms of currency that matter.