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How is this for getting too fancy. Being that you already own the ATM straddle and will get rid of it by day's end, BUt stock goes away from it early but not a lot which means ur sitting on a little profit, but it is still early in the day, would you sell something in the back months-a vertical...

on the big difference between 6-7 dte vs. 1-2 dte trades. On the subject of getting the free ride trade, I was thinking about this yesterday . In a case where you own straddles (ex $50 straddle when XYZ=$50, XYZ goes up to $52.5 one hour later, sell the 50/52.5 call vertical leaving you long...

What I meant about buying the weeklies 5-7 days out is to still keep it as a daytrade. I am not advocating buying on monday and holding till wednesday. Lower gamma BUT lower theta rate-so it evens out. I can definitely see the cheapness though since I have a measure of straddle cost /...

Riffraff, do you ever do the backspreads which is dovetailed in Augen's chapter on Straddle trading? Seems like a little lower return BUT u don't have that time pressure of getting a move in 3-5 hours but is spread out over 2-4 days. Furthermore , what about putting on these straddles with 7-5...

Hi Riffraff, got a couple of questions if you don't mind. These hi beta/atr stocks like appl /bidu/amzn often have really bad alphas i.e. gamma/theta. Does that not bother you when you put on these intra day positions? If I buy premo I always have been conditioned to put on long juice trades...

falconview, do your pnl a favor and don't mask "hoping and praying" with "time" very slippery slope....

Falconview, all positions have risk. If there was 1 magic position with zero risk all reward no one would take the other side of it. One truism of markets is that edges, once discovered gets arbed away. Your risk in straddles is that even if underlying moves 5 strikes, you might still lose $...

I think u got it mixed up w auto exercise which used to be less than .25 but is now just a penny.REad up on auto exercise.TOS as well as other brokers even give customer incentive incovering those cheap short options by lowering commission in order to reduce risk so u suprised me when u said...

Falconview, what exactly do you mean that TOS won't allow you to close if one side is .25cents. Could you please direct me to that rule? Thanks.

How can it not have at least some effect.it might notlowerit down to30 per barrel butdown to 85 to 95 L.ook what is happening to houses when the banks raised margin or silver when Comex raised it on the Hunt brothers.It lowers the ability of the winners to pyramid their positions.so it even...

Really....the guy has fluctuations on his pnl in amounts most of us could only dream of. Kinda like saying tom baldwin does not know jack about bonds.or Fisher on Crude.

Riffraffpatrol, using the same observed price decay, would you do the opposite and sell the front on Monday anchored with a back month for margin purposes and gamma protection and cover it when the decay slows down on thrusday? This would present a better alternative for the trader type who...

have his books as well but at the time of publishing it was about the earnings play and expiration Friday-not to mention that the spread he proposed was a ratio 1:2 which has open ended risk or backspread which has vega risk But I don't think weeklies were trading then so I put it in the...

for the example. In this approach does this mean that you have to focus only on a handful of stocks since you have to be more precise in your timing as opposed having position on 20-30 tickers using longer term positions?

Does anybody here have any recent option execution experience with TOS vs. IB? Since 2009, I am sure much has changed (especially with the TDAmeritrade purchase of TOS ) with the ability of either broker to execute option spreads. thanks.

does anyone here have any recent experience in trying to execute option spreads with IB vs thinkorswim? Any material difference between the 2 brokers in trying to put on a spread at midpoiint of NBBO. I've been out for 1 year and would need to pick one of the 2. i realize that IB is cheaper BUt...

is a good reason to use verticals instead of LEAPS and since Vega increases further out , it makes it even more important

Live in Ridgefield Ct and had no power for 8 days from Irene and 9 days from Alfred the noreaster last week. Had a generator w a transfer panel to avoid killing people and ran it for 2 hours am,noon and pm. Couldnt trade regardless since internet connection down for entire week even when I...

if you are a new trader, your best route initially is to trade these spreads on stocks that are not a volatile as nflx. This way u can observe how the spread unfolds as time/vol,stock changes. Doing it on a volatile stock means observation takes a back seat to capital preservation as the stock...

These verticals intermonth such as what you have when you are long m1 vertical and short m2 verticals can be construed as being long cdr in 1 strike and short calendar in another. We all know it does not make sense but I am wondering what was the first order you tried to put in that caused this...