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I can see perhaps a LEAP with a 330 call, but a Aug call? Not enough time to do much (vol or direction). Plus theta is high so close to the exp date. Not to mention, as I stated earlier, the 1.35 ask was way higher than the .88 theoretical value.

That option has theo value of .88. So not sure 1.35 is "cheap." But Goog has historica1 mean IV of about 40 (give or take). If if it hits 40 in a month (I'm assuming you mean Aug option), then theo goes to about 2.4, without any change in stock price. So might work if for some reason IV...

I buy OTM stangles based on options with IV that are way under their mean IV for past year. It's been working pretty good so far for me.

Intimidated by Natenberg? That's kindergarten stuff compared to Hull. Hull is the minimum one should read before investing - just make sure you've had up to calculus III and some linear algebra.

Used a system but towards the end I started to bet 10x as much per bet as I was when I first started because I thought, "Hey, I'm playing with the caino's money now." So, money management went out the window. Funny thing was I was reading about money management, stops, whatever, in the book...

I've read this forum and books on trading psych but never thought it was that big of a deal (I don't daytrade but do invest in options). But when I went to Vegas for a few days recently, I got a good taste of psych pressures. I started with $400, got to $800, down to $300, up to $1100...

wait, YHOO beat earnings by 6 times, why is it down?

Here is a pdf of a book on Probability. 510 pages of goodness. Print and enjoy. http://www.dartmouth.edu/~chance/teaching_aids/books_articles/probability_book/pdf.html

You made a lot of assumptions about my system. Don't worry this "beginner [has] put more time in planning the trades out thoroughly than simply running after a strategy."

Thank you for taking the time to write such an informative and helpful post.

I fully grasp what I'm doing. But thanks for asking anyway. By the way, calls have positive delta and puts have negative delta. You might want to consider that before you write negative posts to others. Cheers.

Thanks Trajan. I'll probably have some questions as I go along. Hope you won't mind if I send you a message here and there, since you already have been through the process.

non-directional long vol based on volatility cone. iv mean reversion method. altho if i get a pop over the mean, that's even better. options will be otm. liquidity is somewhat of a concern with otm options so i'm careful what i choose. approach might be somewhat similar to the bleeding...

After a few months of reading options books, paper trading, and testing strategies, I've devised a system that fits my personality and is premised on realizing large but infrequent gains from fat tails. Basically my approach focuses on volatility cones. I'm going long vol. I've got stops...

Nice attitude.

June calls? They expire the same day as the rebalancing (Friday). That wouldn't work.

Just wondering if any of you every click on the ads on Google? I never do and neither do any of my coworkers, unless we do so by accident. I'm surprised there are that many people who allegedly click on these ads.

Trading at 268. Ouch.

It's $500 (ok, it's not technically his but it's on his site). It provides a service that I want: grouping of IV by percentiles. So, if IV on an option today is 20%, the program will tell me what percentile it is in based on past IV (100 days, 1 year, whatever). Anyone here know if any...

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B3D4602B2%2D618F%2D4BC5%2DA3CE%2DC1301CEEC852%7D