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What are some characteristics of a stock that is stable and doesn't and won't tend to be too jumpy from one day to the next? How does market cap, volume ect. play a role in this? Thanks

I just want to clarify about #3, so I'm not confused here. I meant that it is better to go long when the IV is lower and has a chance to increase and to go short when IV is already very high and may go lower. Very high IV inflates the price of options and shorting options with high IV could be...

Thanks for the replies. Yes, I'm finding that it is something not really written in stone but something I will have to do on an individual trade basis with it's own characteristics. Coach, do you usually take long positions like this or short? In your post were you referring to long, short...

Thanks for the reply, spindr0. In response to #1, I've been able to use think or swim's tools to generate profit loss charts to the day with great ease and they have a good simulator to analyze a trade before adjusting if for real. #2, The zig zagging you're talking about would be...

Hello, I'm doing some mock delta neutral strategies using TOS simulator. I tried some a few weeks back but I was doing it on paper and with investopedia which was a disaster because of delays ect. Now that I have a proper simulator things are easier to see. Anywho, I'm wondering if anyone...

http://www.youtube.com/watch?v=T3Z7orioQYM&NR=1 Also check out the money masters videos if you can find them. It's almost 3 hours and boring but extremely important.

The problem is, Alex, that USA is no longer a capitalist free society. It used to be much more free, but now it's just a semi free, semi capitalist society. As for morons that get into bad housing loans they can't afford, well I agree, they can eat it. Unless the lender committed fraud, I...

Just bankers and kings scratching each others backs. Nothing new here. Read Franklin. The central banking system and the taxation that enslaves people was the primary cause of the revolution. America had a pretty good run back in the day, but here we are not too many years later, and not only...

Okay thanks. I think I get it. So basically if you for instance had an ascending triangle, the underlying has consolidated @ 50, you wouldn't enter the trade if there was any action above the price of 50 on the 2 year chart? If you saw a bearish stock and found a descending triangle pattern...

Indahook, If you never take trades where price action is above the pattern in the 2 year chart for a long trade and vice versa, then therefore you don't take any trade that isn't going to be making either higher 2 year highs for a long trade and lower 2 year lows for a short trade, correct...

Thanks for the detailed description of how you scan and use triangles. I know everyone needs to develop their own exact style but your post provides a lot of insight. So correct me if I'm wrong but the purpose of the 2 year bar chart is to weed out candidates that have gone above the...

Thanks for clarifying. What is the reasoning behind the breakout/breakdown being more reliable 2/3 of the way to the apex as opposed to at the apex. Yes this is a serious business and should be treated as such. It's not surprising that there is such a high failure rate but a lot of...

Thanks guys. By the way, what the heck is ATR and APEX? My time frame is a few days or so. I'm looking for triangles that have formed for maybe a few weeks and things have really tightened up so I can have a chance to profit on a breakout in either direction if and when it does finally...

How does one search for triangle patterns and other chart patterns? Is there a way to scan using a scanner like the one Think or Swim has or do you have to search by hand? Thanks

Does anyone here at ET have any experience using the Think or Swim scan tool? What would be the best way to scan for stocks that are about to move in either direction? I'm thinking about doing some simple straddle plays and need to know how to search for stocks that are just plain moving...

what the hell is FOCM?

Do a search for delta neutral in elite traders archives. Also do a google search and investopedia too.

Here it is with the delta's as they really were throughout the trade. WYNN Short Strangle Delta Neutral entered on 10/22/07. WYNN trading @ 151.39 Sold 4 175 Calls @ 2.25 Delta .24 Sold 8 125 Puts @ 1.30 Delta -.12 Delta = 0 10/23 WYNN closes @ 158.50 4 175 Calls 2.25 - 2.75 =...

Thanks for your reply, nikko309. I just put the trades in separate threads and will leave WYNN here. I'm sorry I didn't quite get what you said about redoing the signs and perpetuating forward...:confused: Yes the earnings report is a concern. I like the short strangle delta neutral...

Thanks for your input, ajna. 1) I entered the short straddle on MSFT out of ignorance of the earnings report and disregarding the implications of a deal with facebook. MSFT hasn't jumped like this in a long time. I feel kind of lucky that I didn't lose more. Should've taken a long straddle...