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UPDATE - OPTION EXPIRY SPY closed at $215.83 ($0.57 over my estimate). Long ATM SPY 213.00 straddle profit $0.57. Short ATM SPY 213.00 straddle loss $0.57. GOOGL closed at $735.63 ($7.03 over my estimate). Long ATM GOOGL 717.50 straddle profit $7.03. Short ATM GOOGL 717.50 straddle loss...

Yes. But over a much larger number of trades they wont be. :)

Thank you for your support ET. :) #1 - This Week's Most Viewed Threads Stay tuned. I will be posting a summary after the options expire this Friday, July 15. :)

I have confidence in the MM's to efficiently price the options. Best case scenario for the MM's is for both the long and short ATM straddles to break-even. There will always be exceptions but over time the ATM straddles will break-even, making them not worth to trade. EDIT: Commissions and...

Below is a SPY Jan 20, 2017 215.00 ATM straddle (long or short) example that we can watch as it progresses. SPY at $214.92 Jan 20, 2017 215.00 call (bid $7.78 ask $7.87 last sale $7.80) Jan 20, 2017 215.00 put (bid $9.40 ask $9.50 last sale $9.45) SPY Jan 20, 2017 215.00 ATM long or short...

Which one? There are four: Long 213.00 SPY Short 213.00 SPY Long 717.50 GOOGL Short 717.50 GOOGL I haven't checked the quotes yet, I will do that on Friday. I expect all four to break-even. :)

No big deal ........ 62% drawdown should be expected when you are going after huge returns. It's all in the Risk:Reward ratio. :)

IMO ...... You won't get the returns you need with GLD options. I recommend PCLN and FANG (FB, AMZN, AAPL, NFLX, GOOGL). :)

Possible with equity options ..... but unlikely. $1,000 10x trade = $10,000 $10,000 10x trade = $100,000 $100,000 6x trade = $600,000 :)

Be patient everyone. I will update on Friday 15, 2016, after option expiry. :)

Could you give us an update. You started with $1000, what is the account balance now? :)

The links to similar threads has disappeared from the bottom of threads. I found that feature useful. :)

Wait till expiry, it should be more clear. Both the long and short straddles should break-even - at most a small profit or loss not worth the risk. They are dead money not worth trading. :)

Whatever is marketable. I don't bother with low volume obscure options. I have never heard anyone say the "mm's are skeptical of this rally". The media is the one that drums up stories. :)

What is your point? Your reply is very ambiguous. :)

If you buy DOTM options you are expecting a big move on the underlying more than any "spike in volatility". Forget trying to catch any 100x moves. You might get lucky with some 5x moves, maybe even a 10x by buying the weekly options a few strikes OTM. :)

What is your point? Your reply is very ambiguous. Of course the trade can be exited at anytime, it doesn't matter. :)

I'm using the July 15, 2016 options as an example to get the final results quickly. My thread applies to all expiry dates. The MM's mis-priced the options - in the favor of the buyers. The buyers made about 50% return over two days, while the sellers lost 50%. Over time it will balance out...

Long and Short ATM Straddles are Dead Money - But a very accurate indicator of future stock movement. Options are very efficiently priced by the MM's. MM's do not reward money to lazy traders who want an easy buck without having to bother with due diligence. Easy money would be buying or...

On Sunday evening I'm going to start a thread dedicated to how and why long and short ATM straddles are Dead Money. With a couple live examples on SPY and some other underlying, maybe GOOGL. Stay tuned. :)