Reiterating Our Mission for 2012

by Dan January 2, 2012 9:32 pm • Commentary

With the changing of the calendar, CC and I wanted to take the opportunity to thank all of you who have been with us for the past months and welcome all of you that are just discovering Risk Reversal.

In 2011, my partner CC and I set out to prove a concept; that by detailing my own personal trading online on a real-time basis, that we could demonstrate alternatives to the traditional notions about trading and short term investing through the use of equity options.

The primary goal of the site is to offer education, not in the traditional sense, but in a practical manner,  side by side, learning from my own successes and mistakes in the markets. In many cases we have had the opportunity  to go into great detail of what amounts to the “anatomy of the trade.”  We hope that readers find the process of trade construction as educational as the results. By going down the checklist that we go through in each trade, we hope that the reader learns a bit about the inputs that go into a well vetted idea.

The other primary goal, aside from the idea generation process, is to find the most cost effective ways to express those views with an eye towards capital preservation.  The name of the site, Risk Reversal is obviously a double entendre, but the main intention is to demonstrate, through the use of equity options, ways to minimize risk, the most optimal ways to express a view, add yield, use leverage or simply preserve capital in a trading portfolio.

So in a fairly long winded way, I mean to state that our primary goal with RiskReversal is education.  We don’t use that term in an intentionally arrogant way, because after 15 years in the business I still find myself humbled on a regular basis. Simply, we are trying to take bits and pieces from our shared history of mistakes, disasters, minor successes and home runs and help the reader make slightly more informed decisions about their own investing/trading.  We hope that after some time with us the reader will arrive at their own decisions, not only about the ideas that I lay out and about the ways I express them, but in their own portfolios.

Aside from our goals, CC and I want to express our appreciation for your support and feedback and hope that you see the tweaks that we have and will continue to make to the service based on your input. As we grow we want to make sure that Risk Reversal maintains the personal relationship between contributors and subscribers that we feel makes the site original. We are working very hard to add more content, including a push for very targeted options education (example here) outside of the regular trade examples and market commentary. This push will also include more interactive educational resources like the open comment question and answer posts and better trade management and analysis tools.

Trading has been light the past 2 weeks as we’ve been traveling for the Holidays and didn’t want to make mistakes during a time of less than 100% focus in the markets. We’ll be back at full strength starting tomorrow.

We had a great first 9 months with and we will look to build on that for even greater things, together with our subscribers, as we enter 2012.