Comments on: Diversification or Delta Neutral?

by: Tanady

Thu, 01 May 2008 04:07:42 +0000

Options are perhaps the most versatile of all the trading instruments in the market today. They cost a lot less to transact than stocks. And because of this, traders are able to considerably limit the risks linked with a certain transaction.

There are basically two kinds of options: call options and put options.

Trade Smart. Not Often.
Tanady
Options-University.Biz

by: dnlxzwvgoc

Tue, 03 Jul 2007 18:49:02 +0000

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by: Christian Gross

Wed, 17 Jan 2007 15:36:32 +0000

I have no idea because where I live capital gains are not taxed. Sort of keeps things simple for me.

by: crni

Wed, 17 Jan 2007 15:24:58 +0000

Thanks for this article. I am now reading about the delta neutral stuff. Brownian motion, Taylor series, derivatives, very interesting (my background is chemistry).

I would like to point one thing out, though. If you decide to actively manage your funds, you need to make yearly gains that are at least 20% bigger than the index fund gains. Active trading, including delta neutral trading, means that you buy and sell your position and thus need to pay the capital gains tax. So if S&P makes 10% in a year, you need to make at least 12% to see any difference. At least if I understand things correctly.

by: Christian Gross

Thu, 11 Jan 2007 15:06:07 +0000

I can’t say what my wife does or where she works because of banking secrecy laws. I mention this, because I just asked my wife regarding the comment from Kimber and she was surprised. REAL traders that work the floor do not think women are inferior and on top it where she works there are women traders.

And my wife makes oodles more money than I do! Where you have point is that there are not enough women traders, just like there are not enough women engineers. My wife and I are both engineers so I know how few women engineers there are.

Now that you mention it, in our engineering classes none of the guys ever thought women were not good engineers. In fact guys loved women engineers because they partied well (drank, burped, and behaved as rudly as men!)

by: prlinkbiz

Thu, 11 Jan 2007 14:47:18 +0000

If you read Kimber’s article carefully she simply said:

“BTW…I enjoy that Cramer credits his wife, whom he affectionately calls The Trading Goddess, with most of his understanding of the market. It blows the myth of women not being great traders out of the water.”

Meaning it is a myth that women can’t trade- she didn’t say she believed it- merely said it was there. Obviously she has done very well trading and we encourage women to educate themselves and invest-