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well...you do know exactly what your profit is NOW...but it may make sense to do 1/2 & 1/2 just for comparison/learning purpose. GL:)

Nice trade Leon...If I can play along with you...You initiated the trade primarily as a volatility trade. You sold the straddle when vol's were up and now they are down, thus the profit. For that reason I don't particularly like #2 or #3. I would take profits at this point because if we go...

Essentially you legged into it which works just fine but its a directional play, rather than pure vol play. If you are right on direction and timing it will work fine.

FaderTrader you have asked the "holy grail" question. The problem of selling the option in a high vol environment is directional risk...I assume you have read both McMillian and Natenberg to get an understanding of volatility. However there is no substitute to trading in different volatility...

I vote we pay MO to do a "Cliff Notes" version of Cottle:p

KTM gives one example of why you really can't make hard and fast rules on this one. It depends....and no substitute for experience. If you are opening a position and have a good idea of what "you" value the option then no..don't chase it. However there are times you may need to chase for...

Perhaps a key to performance is that there has been NO volatility (until very recently) to arbitrage? '04, '05 and 1st 4/5 months this year..zip..nada.. only recently have there really been any opportunity with vol's going from 10%-23% and now ~15 on spx.

Majority of the population are OUTSIDERS:D If your into sports, hiking, skiing, biking,hang gliding, mountain climbing, running, walking, skydiving,all snow sports, golf, tennis, even sailing, motorcross...spectator sports, football, baseball, hockey,basketball, racing..then you'll find...

If we have a 10% correction in the SPX then I'm buying ALL your selling!!!:p

I guess its time for me to go out on the limb and say why I believe we will NOT see 1200 this month (or next). JOBS. The US economy is supported by people who work. As long as unemployment is relatively low and interest rates are relatively benign (and 5%-5.5% is definitely benign) and...

and YOUR reasoning WOULD be?

Fair enough:D

hey Rally...not to nitpick but last week 6/15 on Cache's journal you mentioned that you were looking for a move to 1290/1300 to put on some bearish positions....any specific reason for change of heart? thx A

I thought you might be hinting....TWINS?????:D

19.95 is wayyyy to low...$199 more like it:p wasn't Mktsurf offering Cottle's used book for like way more!

I think your numbers are slightly off...with spx at 1252 the July(1225) calls are abt 41 and puts at 13... but with 17 on the vix the sell did make good money

June Autopsy..err .....ummm ANALYSIS (or Saturday AM quarterbacking:D).... One of the reasons I've not "blown out" so to speak this past year has been very carefully reading many posts from both the success side and failure side. In that spirit I want to share the outcome of my June trade...

I would also recommend the study guide you can get to accompany the 1st 25 chapters of McMillan. After each chapter you can test your recollection and its a good way to familiarize yourself with the terms. After the 1st 25 chapters then go ahead and read Natenberg...a good portion of McMillan...

I was married to one.(trust fund) Note the .....WAS. And Fishface (not you volente) wash your mouth...you say fuck but then use $#@% to say shit? Don't you have a Roger's Thesaurus in the house? And Baron when does this stupid thread go to trash...chit-chat.:confused: