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Zen Kernels, Insights for Traders: Gems

October 29, 2013 by Terry Chitwood

Zen Kernels, Insights for Traders: Leaving No Footprints
Zen Kernels, Insights for Traders: Raven Moon

Zen Kernels, Insights for Traders: Gemsemerald grass

each blade

a gem

—Terry Chitwood

What could be more ordinary than a blade of grass? And yet, in the poem, each blade is a gem. This refers to a blade’s internal essence (otherwise lawnmowers everywhere would have a field day shattering gems). Sorry lawnmowers, a blade’s internal essence is indestructible, and yet—unique.

Grass

Hey Terry! Grass is grass. No, grass isn’t grass. There are a variety of grasses and they come in different shades of green—even Kentucky bluegrass—and in other colors and textures like bamboo. So there.

Basho

Talking about grass brings the following poem to mind:

“Sitting quietly,
Doing nothing,
Spring comes,
And the grass
grows by itself.“

–Basho

Spiritual Growth

Certainly, this poem implies that spiritual growth happens naturally and organically without forcing it like the seasons change and the grass grows by itself.  However, this reminds me of corn growing (it’s a rambling post) and corn trading.

A Corny Tale

A few years ago, my shadow (alter ego) sold some 350 corn puts (front month) when corn was trading at 420 and was in a gradual uptrend (it wasn’t a stupid trade). Naturally, as soon as he placed his trade, corn plummeted, threatening his position which was now an unrealized loss. He asked me what to do. I said, “Do nothing, corn grows by itself” (I only wished I had said that). What I really said was, “Do you want me to show you how to save the trade?” He said, “Yes.”

Delta is the Key

The first thing I did (don’t do this at home kids, you may get hurt) was sell some calls decreasing the delta against his position. Then using futures and other options, I played with the delta, taking profits off the calls and futures which balanced his losses with the puts and my shadow (I) even ended up with a profit. These trades took place over a two-week period.

Saved

I was going to write an article about the anatomy of the trades but never got around to it. The article would have been called, “Strangle Corn before It Strangles You.” I really like this title. In fact, I may have discussed this trade just to be able to share this title. So it goes.

Gems

Basho didn’t trade corn, but he wrote some brilliant haikus. I guess he really did do something while the grass grew. Remember, each of you is a gem—irreproducible, one-of-a-kind.

Photo Credit: Stock Photo by Elena Elisseeva.

Zen Kernels, Insights for Traders: Leaving No Footprints
Zen Kernels, Insights for Traders: Raven Moon

Related posts:

  1. Zen Kernels, Insights for Traders: No Footprints
  2. Zen Kernels, Insights for Traders: White Rose
  3. Zen Kernels, Insights for Traders: Dead Leaves
  4. Zen Kernels, Insights for Traders: Distilling Darkness
  5. Zen Kernels, Insights for Traders: Unmoving Mind

Filed Under: Zen Kernels Tagged With: Basho, insights for traders, trader, trading, Zen Kernels

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