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American Capital Agency Corp. Message Board

  • robert_jdelaney robert_jdelaney Apr 7, 2013 10:31 PM Flag

    OT- Trading in the Zone- Thanks Doc

    Great book- have lots of it highlighted. My spin on it will be to trade 3-6 month windows vs 1-7 day windows as alluded in the book. He does say to make use of stop loss orders which I found interesting- almost seemed like a disciplined way of not incurring additional losses because your mind will try to persuade you that you are right- despite the market action. I agree but the range of the limits for options needs to be more than a few tics as referenced in the book

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    • Hey Robert,

      I am glad you liked the book and hope you had a great vacation. I vacationed in FL at the same time and re-read the book for a second time. You will see I added stops to GLAD/3% largely in response to Mark Douglas's recommendations.

      Yes, trading with stops for options is a different beast. I have never done that, as far as hard and fast numbers. Whipsaws in pricing is much more volatile and exponential with options vs stocks. It is difficult then, as your stops can be taken out on small underlying movements because of changes in volatility which has nothing to do with the actual price movement of the stock(on a relative basis).

      That statement might be challenged but I think most option traders know what I mean. I don't know if I'll ever get to the "Zone", but GLAD/3% is my ball and chain to keep me confined so hopefully I don't stray to far from that "Zone"....;-)



      • 1 Reply to reits_r_us
      • Thanks doc- I will look at the GLAD/3% this weekend- i have been on sidelines- work is been crazy and i do not feel comfortable not being in tune i guess.

        I did start to go long on Jan 15 calls- 40 so far- got em at $32.88 BE. I think AGNC made some $$$ on the buyback/SPO U turn they did. So I expect the 2Q earnings to be OK. But again i am taking the book to heart a bit

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