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I hear you bro... My SPY 130 short straddle isn't looking too good right now. :eek: If I was trading ICs it would be even worse.

Screw the learning, I say jump right in short and naked. Too bad you missed today. Would have been a nice quiet day to get your feet wet. Ok sorry had to vent a bit... We have similar backgrounds (except maybe the young part). My biggest piece of advice would be NO $5K COURSES. It's ok to...

Ok lol... I thought you meant this guy: http://www.cnbc.com/id/30231177/

Lolol... who is Count Chocula? That trader from San Fran?? Also last week they replaced Hello Kitty Chick with a new guy. Not sure if it's permanent. Maybe they want the show to be more "professional". Also love that they have a Forex show on right after. They really know how to "educate"...

Did he give an answer? Or straight to commercial? :)

So true... Naked really gets a bad rap in the media. But anyone who is long regular stock is naked too!! My favorite is on CNBC Options Action when they compare a proposed options trade to the same trade using regular stock. They'll say something like "you could initiate the same trade by...

I recommend "Trading Long Straddles" by falconview (with additional commentary from forexforex). Careful though, it's 5,000 pages and there's no ending.

Hi Dave, I'm in Montreal too. I don't trade futures, only options, but I use Interactive Brokers. Haven't had any problems with them and the initial setup was relatively painless. Plus they have an office on McGill College right downtown. You'll have to double-check on the futures...

I assume you mean the position ran past the breakeven point (ie a loss) then came back into the profit zone later. The flip side is there are months when I close the position at a profit before the position runs into the loss zone at expiration. That's one problem with using historical...

I haven't done much historical analysis so I appreciate the info. What do you mean by "Some of those months represent a reversal into the profit zone though"? Anyways always looking to tweak my strategies. If you wanna discuss more you can send me an email to socc2@yahoo.com.

- I stick primarily to SPY, EFA, EEM. - Been doing it for a couple years. - Usually no more than 5 weeks to expiration. - No strict filters. Will usually look to adjust when I get short/long around 50 deltas.

Yes that's a good idea as long as you buy the wings at the same time as the you sell the straddle (ie an IC). If you try to leg into the wings at a later date it could get ugly. With high straddle premiums I would imagine you could put on an IC and still have enough premium to make it a...

I sell naked straddles every month on a few index funds but would never consider doing it with SLV. Selling naked straddles on SLV is NUTS. Right now a SLV May straddle will get you about 10% for 2.5 weeks. They could give me 25% I still wouldn't touch it. Given the OP has "rudimentary"...

Yes this is correct. However delta is always changing too. The delta from $40 to $39 won't be the same as the delta from $39 to $38. And other factors will change it too like time left and volatility.

I'll save you some runaround and answer your question in basic terms. "Is there a way to know how much that option would be worth if price droped to 45? Or 40? Or 38?" What you are asking is called delta. Delta ranges from 0 to 1. If a stock has a delta of 1, that means if the stock...

All the info is in the quote itself: "QQQQ110304C00057000" QQQQ = symbol 110304 = date (March 4, 2011) C = type (call) 00057000 = strike price (57) The 3 quotes listed here are the March 4 weekly, the March 19 standard, and the March 31 quarterly (I think).

Thanks again for the reply sonoma. I see what you're saying now. I understand the P/L of the position and how it will lose value as the underlying moves futher in or out of the money. I guess I was worried that there would be some kind of difference depending on whether the position was in...

Ya basically a calendar call and a calendar put. I like to be long theta. The short strangles and calendars accomplish this. Though the calendars make me long vega which is fine assuming I enter the trade when vol is "low". Thanks for the replies. Any other good long theta strategies for...

What are your guys' thoughts on short strangles? - indexes only SPY, EFA, EEM - front month only, opened a day or two after previous expiration - about 6-10% OTM on both sides depending on the instrument and premium levels - generally delta neutral at the open but usually not exactly...