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In one sense you are correct. But what is the risk of you losing your premium? Far as I can see with 90 day options trading in QQQ, any loss is zero. The QQQ moves 5 strikes in a month, or four weeks, or 20 days. It takes in the standard straddle, or strangle, about 3 strikes to make the...

Hoop 121 Let me reverse the question. If there is a risk, what is it? Where is it? I don´t see it.

I´m enamored of strangles and straddles. I´ve heard from two people who are making money at it. So still seeking the TRADE SECRETS of how to do it. Far as I can figure, there is the standard way and a second way. The standard way earns about 3% a month net. I´m not finished...

Good answer Hoop 121 I hadn´t quite thought of it that way yet.

Mushin It was real cash money. First time trying it. I will talk to TOS help on Monday.

Ha! Ha! Ha! Thanks for the input. Hope it is good coffee? Yup! The risk bothers me also, thinking about it. Have no idea what would happen if there was a Black Swan 10% market drop, while holding a CALENDAR? Anybody know?

Jeff I see the CALLS made a shallow move. I never got a signal for CALLS. Was watching Friday, but never happened. I show the chart with pressure down and sideways. Don´t know what that means? I tried to do a CASH money CALENDAR, but couldn´t make the TOS CALENDAR order list thingy...

Well I´m not sure where I read that. But week before last, I was trying to close a calendar. The short side was either a couple of cents on a late Friday, or zero. I was trying to close the trade as a complete trade, using their list of trade types that places those orders. I spent a couple...

I just finished experimenting with some SIX trades. For the week, on paper. Limited test, but needed to see how they would do. 1) A Long Calendar in XOM exited Friday morning had a net profit after commissions of +.28 cents. 2) Long Calendar in the QQQ had a net profit of +$1.85 3)...

Interesting reading. Picked up some opinions seem worthwhile. I´m leaning toward choosing a strangle over the straddle. Longer mid term. Say two weeks trading. I¨ve debated the idea that instead of the traditional strangle used on OTM, instead of going ITM. The reasoning being...

Well JEFF, seems like your mechanical system gave you a good signal with that GAP UP open this Friday morning.

Forex forex I believe at one time, you were trading some trials of way OTM options. I was reading up about ratio back spreads, then decided that I didn´t have the time, or the interest right now to try them. I´d be curious if you have traded them and the results, as my brief reading...

Jeff Was just going to mention, the ATR and VIX are rising. So time to trade long options again. Then I see you already entered. I´m still waiting here for a better entry signal. Probably tomorrow as only ten minutes left here.

Babu Just reading up on butteflies. Interesting to note your closing the body first, waiting for a reaction to close the wings. I´m starting to understand the lingo anyway. Progress however small. Good on the profit.

As an aside, during the past 10 days or so. I had two long option bets that did not pan out. I kept them and decided to use them as a very, very, wide strangle. These were in cash, and so cutting losses short would have put me below my, self imposed parameters to continue trading. MANY...

Jeff U said something about your investing formula being adapted to changing the VIX inputs, so you got smaller increment trades, as the VIX changes. That bothered my simple little mind and not having the vocubulary to express this in GREEKS, I decided to let my subconscious work on it...

I´m trying end of day, to run some different classical trades to learn them. Got bogged down with long straddle. Who would figure that, when I traded them successfully last week. Anyway got 3 long straddles on, PFE in July, CSCO in July and then QQQ in the April weekly. I am not sure...

Jeff I see the VIX is dropping, so that should make it harder for you to make money with long options. The VIX and the daily Average True Range ( ATR ) pretty much reflect each other. When the VIX drops, the daily bar in the charts get shorter. Which means there is less price...

I´ll post this for my fellow novices. Just got off the line with HELP in TOS. I was showing a line that I was exposed the QQQ index. Turned out I had a CALENDAR trade a week ago. I tried for the last two hours of expiration FRIDAY to close the CALENDAR, but it would not get closed. I...

PUTS ??????