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    Which is better? Long Straddle or Long Strangle?

    Margin is an issue but what makes the question silly is asking which is better, selling a naked put (equiv to CC) or selling a naked strangle? Apples and oranges: two very different risk graphs. Or better yet, which is better, buying QQQ shares right now or shorting them? D'ya think what...
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    Using options for hedging purposes

    I don't care much for the backtesting but a massage would do nicely... just not from a hard ass like you :D :p :D
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    Using options for hedging purposes

    As I mentioned in my previous reply, in order to get a 23% return, they'd have to be doing some amount of timing and/or legging and/or ratioing, and most likely, getting some favorable bounces. Using momentum, volatility, macroeconomic factors and ratioing the calls is just that. Atticus is...
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    Which is better? Long Straddle or Long Strangle?

    Only Carnac the Magnificent can psychically divine answers to questions like these.
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    Which is better? Long Straddle or Long Strangle?

    Depends on size of move, time held, IV change... all of the usual suspects.
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    Using options for hedging purposes

    Obviously there's a big difference in hedging with vertcals/diagonals vs collars and there are so many possibilities that there's no simple one size fits all answer. Be that as it may, I don't think it makes much difference with vert vs collar in a high IV environment. What you overpay for the...
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    Using options for hedging purposes

    A same month collar is equiv to a vertical spread. Using different months makes it a diagonal. Either way, you're not going to make +23% in a down market with long stock/index collars unless there's one or more of the following: legging in, ratioing, adjusting, and getting a favorable bounce...
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    Chasing unicorns?

    You might consider safe sex. Place a pillow or two in front of the headboard :)
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    Chasing unicorns?

    This is out of my ken so basic thoughts/questions. Wouldn't the slippage and commissions be rather large? IOW, a lot more to overcome. Is there enough in such a strategy? Wouldn't the IV's of the components tend to be higher than the index so you paying out more, premium wise...
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    Chasing unicorns?

    I guess I'll deal with you before SLE because he's making my head hurt. Tho I haven't used it, IB has a feature where you can execute all orders on a page, eg. a basket. But market prices troubles me as well as all of the slippage.
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    Chasing unicorns?

    Thanks. Whether you forget to put the seat up or down could be traumatic :)
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    What makes you say an option is overpriced/underpriced ?

    I'm in too - I saw no reference to shared losses :)
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    Chasing unicorns?

    Is there a translation for the first sentence? The second one is crystal clear :)
  14. S

    Chasing unicorns?

    Thanks, could you provide add'l detail regarding the dispersion idea? Will that keep you awake? Thx
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    Chasing unicorns?

    I'm using 3 to 3-1/2 times pattern day trading margin intraday so I'm not looking I'm not looking for additional trading ideas. I deal with that all day already. Yours would be a nice answer if 1) there was anything I wanted to own (I don't), 2) selling CC's was low risk or had a decent...
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    Chasing unicorns?

    That's what I said in my OP. Since I'm already preoccupied with trading, I don't have the time for more trading :) With your option knowledge, you should have some suggestions for a high probability strategy for a low yield that has moderately low risk. Got milk?
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    Chasing unicorns?

    The statement was stagnant cash not a stagnant account so please, keep your stagnancy to yourself :) I siphon trading gains off to another account. Since I'm not pleased with 1% MM, I'm just looking for something better to park cash in. I thought someone might have some viable yield oriented...
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    Chasing unicorns?

    Looking for a conservative strategy that would provide a high probability of success with a low degree of risk where the goal is yield. Low risk is essential since I take risk on in my trading account. This idea would be for stagnant cash not in my trading account. I'd like something a...
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    What makes you say an option is overpriced/underpriced ?

    I think there's a difference b/t undervalued options and mispriced options. At times, I'm not sure which one people are referring to.
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