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Volatility is the only reason to trade straddles. You mentioned using LEAPS. Pull up a straddle with June expiration and then one with Jan13 expiration and compare the gamma. That is the reason people trade straddles in the nearer expiration. I spent 14 years trying to find that one option...

It is hard to make money with straddles, atm options are typically the most accurately priced in the series. Think of it like this, when you buy a straddle you are saying that the market is incorrectly pricing the size or speed a stock will actually move. Someone is selling what you are...

Since everyone seems to be a seller of premium on these down moves, why not buy an SPX straddle and finance the theta with otm VIX call credit spreads?

I noticed someone in this thread mentioned using their TOS platform to model probability of touching. Although I use TOS and it is a great tool, it has a real problem calculating volatility correctly for OTM options. If the main input of prob of touching is so off, how do you compensate when...

Shouldn't his models have predicted this?

So the website you are linking to is free and you don't have to pay for the service?

I apologize if you already answered this, I didn't see it in the posts. Why are you using DITM debit spreads instead of OTM credit spreads? The risk reward is the same profile and the OTM has a tighter bid ask spread. Ex. IBM Jan 12 100/105 call spread at 3.68 mid or Jan 12 105/100 put...

So do you think April/May is the market norm or recently? Also, when you say 85% probability of profit are you taking into account that you may experience a drawdown that hits your max loss before it gets back to a profit? You mentioned putting a stop in at 1.50, how are you doing that...

What everyone else said above, the lambo/camaro is a great analogy. Pull up an identical spread with monthly vs. weekly and look at your negative gamma difference. If you don't know how to do that or what gamma is then study until you do. Everything is sped up on weeklies and when you need a...

Wade Cook Wall Street Money Machine is the authority on options....just kidding!! If the books are over your head, you need to take the time to learn options so that they don't. Go to cboe.com and register so you can watch their free webinars. Give yourself 6-12 months of just watching these...

l3randonf, I am assuming you are seriously asking and not here to pump Snider but either way I can provide you some info on Snider. My friend's parents were preyed upon by Snider and her strategies a few years ago. Look at the website, geared towards people in or heading to retirement that...

Thanks!

Does anyone have any experience with the monthly membership or the mentoring program?

Thanks

Three line break charts (or three price break charts or line break charts) are a lot like p&f charts. Try this link for more info: http://www.marketscreen.com/help/atoz/default.asp?Num=101 I use them set up on a weekly close to give me an overall view of what the stock is doing. If a...

I use them as an overall trend indicator, they tend to filter out a lot of whipsaw movement. They are tough to trade off by themselves since you may miss a large piece of the move.

Does anyone know any chart sites (preferably free) that allows for three line break charts? I typically use pcquote.com but they seem to be having problems so I am looking for an alternative source. Thanks