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This was 5.7 earlier today

Aww c'mon Kevin, cut me some slack here. It's not my personal 1. Just here in the office for the advisors to use. Thanks for clarifying that for me.

Goodluck tomorrow

The straddle is 8.90 mid. After earnings the vol usually drops to ~27% meaning the straddle will be worth ~ 7.40....8.90 - 7.40 = 1.50 expected move tomorrow. No where near 5.7. Even if it dropped to 20% vol which it never has in the past 4 earnings, the straddle would be ~5.8. Meaning a 3.10...

Actually tho, would you mind clarifying this for me? I can't figure it out

LOL I figured it out! The market move is rubbish for illiquid stocks!! :D

Hey everyone, so I found something interesting that is not making much sense and hope if you can clarify it. Expected 1 day move is = IV*sqrt(1/365)*Stock Price. On liquid stocks this calculation works beautifully. But on illiquid stocks, things get funky. Let's look at CXO, earnings are after...

Why you gotta lie for? I thought we are here to learn

I will be keeping a eye on this and your BABA blow up this friday :D

Stop watching tasty trade and optionalpha and watch a few videos on nassim taleb and chris cole. That should help you balance out

Dude I thought we talked about this already? You can't say nvda will stay in that range 100% of the time. So let's say 80% of the time you make $2 and 20% of the time you lose $10. .80 x 2 - .20 x 10 = -.4 Oh lord. That is a losing trade. Like @truetype said...this is an easy way to tap out

If I think vol is cheap within 1 month to expiration does it makes sense to buy a strangle rather than a straddle? Reasons being a strangle will have a higher dvega/dvol, will be cheaper because of ddelta/dtime (wings are cheap near expiration). Then just delta hedge accordingly

never a losing month using TA?? why are you not running a hedge fund right now making 100 million a year?

Actually something else I want to mention to you is, if you graphed all the all the people in my community sleep time, it would be normally distributed. In the market, one participants actions may not be random but crowd behaviour can be random and in fact if you do some research on behavioural...

huh? how in heavens name does that have to do with TA? Think about this, if you had access to years of my daily sleeping schedule and so did 1000 other people. And then were asked to place a bet on what time I will go to bed on Thursday, you would probrably have a narrow range on when I would...

straddles and strangles are volatility plays. what are you trying to do here? can you give an example of how you want to use the trade?

Wow you guys are amazing. Thanks for all the advice!!! I was be referring back to this thread when times get tuff.

Hey thanks for a GREAT response JSOP. Your absolutely right, after all men age like fine wine if you take care of yourself. What was it like on your way up the latter? Did you start working on a desk when you got out of school?

Thanks for the laughs. If you can make money trading with TA then I really can't judge. Maybe im just sour because TA never really worked out for me.