How did I think the futures and futures options were handled differently? I just never thought about it.
In essence it appears you can do ratio backspreads, synthetics, all the same stuff one does in the cash market. Believe me it was not the high note of the discussion; they did not even touch on it for long. It was just long enough that now I have to go through about 500 pages on esoteric futures options stuff so I can adle my mind. I always just bought or sold the futures and stayed away from the options but now it's like throwing a red flag in front of a bull, think about it....
I pull a Tom Trader. I get a little focused on the long term...you know, more than 10 or 15 minutes...and I sell the spoos. The market moves my way, say 10 points.
My work or intuitive sense tells me a bounce is at hand but my long term-posturing is to stay short so I write futures puts and collect the premium. After the bounce I close out the puts and I still have the short on plus the premium on the puts.
Yes, I know it's obvious but I never thought about it.
Calendars, ratio calls, combos....at my fingertips I now have the potential to completely confound and confuse the daylights out of myself.
No, it was a free seminar....I'm still not on track with this spoo playing by large funds like Fidelity. Rydex, sure. Magellan, I am not so sure.
I have looked at quarterly reports from funds like AIM and FIDO before....I have never seen a line item that said "$xx,xxx in the Standard & Poor's December Contract", have you? |
