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With the /ES I wait till the initial theta bleads off after the open. So I enter around 10:30 EST. Usually you can buy the straddle at this time for under 20 points or under $1,000. Usually a move one way or the other to turn it profitable. I'm done by 2:00 PM as my experience the last hour...

He has a website up that's pretty cool. I've subscribed.

any book by Jeff Augen or Sheldon Natenburg

3875

Curious to the answer to this as well. I haven't found a good strategy around earnings yet. I like the IV is juiced for flies and taking advantage of that on an expiration day before earning earlier the next week. But outside of that i haven't figured it out.

Sometimes if the market makers have a large position in the ATM options they will balance their deltas and risk by selling or buying stock relative to their inventory on expiration day. Looking at the OI in the strikes around the daily move Friday there isn't enough there to do it. Even at the...

Week 7 - Updates and Totals VXX 14-16 Call Spread hedge @ $0.56 sold @ $1.90 +$1.34 RIOT 45-50-55 Put 1:2:1 @ $1.30 sold @ $2.01 +$0.71 WKHS 10-12-16 Put 2:3:1 @ $0.70 @ $0.35 -$0.35 TLRY 25-30-34 Call 1:2:1 @ $1.45 @ $0.75 -$0.70 total p/l for the week: +$1.10 or $110 Points to Ponder...

Good feedback. I need to ponder this a bit. In general i have a directional bias towards pinning on Friday on the strike with highest OI as that has so far been my edge. Ideally I'd be rolling down the OTM spread into the fly structure and locking in the butterfly at a cheaper rate or...

Week 7 - Update Entered the following flies today: VXX 14-16 Call Spread hedge @ $0.56 RIOT 45-50-55 Put 1:2:1 @ $1.30 WKHS 10-12-16 Put 2:3:1 @ $0.70 TLRY 25-30-34 Call 1:2:1 @ $1.45 Straddles: Have been day trading /ES straddles on...

Always hack the menu. McDouble is $1.99. Order it with only cheese and ask to substitute mac sauce for the ketchup mustard pickles. Now you have a big mac minus the gross lettuce for half the cost. You'll miss the sesame seed bun but to save a couple bucks I can live with that. After big...

No great answer on this one for me. I think I just find myself more comfortable with /es than spx. i like the trading hours on /es as I can trade it overnight as well. I also like the day of straddle strategy in corn, wheat, and beans. But alas TW doesn't have the grain weeklies so I have...

True. I mean if you buy them long term you can gamma scalp as the underlying goes above the strike buy selling and then buying when it goes below. These can add up to wipe out the theta losses over time. But this isn't the usual retail trader's plan with the straddle.

Thanks for following up. I will go back and look. My presumption was the screen shot were all trades from the date of last Friday and as I'm looking at them it was odd because some of these entries and exits weren't in line with prices from that day. If this sheet has trades on it from other...

Are these trades from the most recent Friday? How do you short CAT at 169 when it's range for the day was 202-211. Are these from a while ago? A typo? or a different symbol? Same with BA? the daily range isn't near the price you have. Upload the wrong image?

They are possible but most likely disappear before you could execute as some algo is going to pound it back into parity before you can bring up the order screen. If there is a retail trader who can pull it off my hat's off to them.

Also the MM will always buy them as they just gamma scalp them as they correspond with the rest of their inventory.

I buy the ATM straddle consistently on expiration days. I do this because on this day they are the best way to buy gamma and profit from intraday moves in the underlying. And as it's expiration day I'm flat these positions by the end of the day. Usually I'm flat them in under an hour from...

I would think OP could post a pdf of a statement showing the trades and just block out the identifying information to show their profitability. I mean intraday option prices can swing pretty wide if he's in and out pretty quickly he should be able to make these profits. But I would find it...

A question I have for those who sell premium for a living...... It seems with cash covered puts you know your risk it isn't really infinite. The danger more seems to be in selling naked calls. You can roll up and back but you're really just keeping a loser open if it doesn't revert to the...

a market maker will take it if you offer below intrinsic value. They will buy it and hedge immediately. You should be able to be filled for less than .05 under intrinsic. Just let it sit a while.