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Howard I thought about your Management plan remark. Never thought about it to tell the truth and wouldn´t even know where to start. I´m still floundering around trying this and that, to learn the nuances of the Long Straddle/Strangle. If there is a goal, it is to start compounding...

Which is why this Wednesday morning I opened another column of my recording volatility changes. I mark this one for VEGA for the above strategy. Essentially I´m interested in if VEGA can forecast direction before the trade is put on. I don´t really have any record of VEGA actually...

Edudamon Yes, that comment on dropping the losing side is a different strategy coming from Forex Forex. The time frame in that trade is measured in an hour, to four hours. I will try it again this week and see what happens, using a paper trade.

If you are trend following stocks, you should weigh the time spent in trade versus the profit take on the time. You will find shorter trends return the same profit faster, than longer trends. While you use mental stops, I like trendlines myself. The secret with trendlines for exiting a...

Trend following is directional trading. Moving averages are good. The problem with a trend is you cannot forecast the length of time it is going to work. Trends are variable and you often get shaken out. I have traded options trends and still do occasionally and I use the DMI...

Ohhhh! I´m sorry, I didn´t realize it was of interest here. I´m holding the 58 Sept. QQQ long straddle spread at $3.90 at 2 contracts. In my cash account. It is already profitable. But I´m waiting a bit. I´m basically waiting until it goes to two strikes as a move. Or the 56...

That looks interesting. Will give it a look tomorrow. Thankyou.

I hope you came out with your method a net winner. Did you? As to backtesting, or paper trading. They are only guides to learn the ins and outs. No amount of research on past history, or charts, will replace finally REAL CASH TRADING. You cannot learn from historical data. As the future...

Here is one for you rich professionals and money makers. I´ve been trying to make sense of IV and Vega. I have not yet got the picture in my mind completely. Perhaps you would care to comment? I have a memo here contributed by somebody that told me that VEGA hurts the Long Straddle...

Increasenow Theta is maximum in Weekly Options. For credit spreads they work great. I doubt it for Long Straddles, vulnerable to Theta decay.

Atticus is one of the great people on Elite Trader. Never stinting his time to challenge obnoxious posters and help novices. He also makes a LOT of Money by my standards in trading. Though he is way too professional for my level, or lack of expertise. His moves and sophistication too far...

Ive been puzzling over the Long Straddle and how you count it. Can somebody chime in? I feel more than a novice, I feel like a complete fool. I suppose I will figure it out, whenever it shows up in my account in TOS though. Still I would like to know for sure. I place an order for a...

Well okay, I´m in a real money live Long Straddle trade this Monday morning. I´ve been reading through this thead. I was looking for the hint somebody gave me on getting a better price in the QQQ on the Long Straddle. Didn´t find it and since the index had hit my buy number, I went...

The Day Trader rule limiting me to 3 trades a week is really bugging me. I find it cancels any risk control I might build in. I was thinking today about coupling a directional trade and a straddle non directional trade in one, to evade the Day Trader rule. the trouble is, I would like to...

Another week has passed, with still more paper trading. Not totally settled on a strategy, or group of strategies yet. I like very much the Long Straddle and Strangle, because you do not have to predict the market. What seems to be cramping my style is the DAY TRADER rule. They only...

Hardly Rodney. Good ryhme though. I would appreciate the graph more if it was just a ROI figure for his cash account balance for the year so far. Then you could understand the graph better, without revealing any cash details he may feel sensitive about.

Welll here are the results of my training straddles done on paper, with pen, using real time TOS data from my cash active account. 10%, $28, which was a 6% return, $52 which was a 6% return, $8 which was a 1% return, $24, which was a 3.5% return and a loss of - $22 to commissions because I...

Tuesday morning, the 5th of July start of new week. Went back to an old two straddles I let ride. They were about 1.5 weeks old. Because of the run up. One earned 2.7% and the other earned 8.5%. I found that interesting as they were about two weeks old on an 8 week out, - use of...

Whoops got kicked out of that message while typing. Anyway, I am convinced that the LONG STRADDLE is indeed a VOLATILITY PLAY. Thinking that, then brings me to the conclusion, that you can try to predict a market move to anticipate the rise in IV. Or you can take a position and stand...

OBSERVATIONS AND CONCLUSIONS Back at the beginning of this forum, some contributors were telling me that the LONG STRADDLE was exclusively a VOLATILITY PLAY. For a while I was thinking you could also make money off the intrinsic value. In the end, I have come to the conclusion, that...