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What's hanging you up is the minimum ticket of $1 per transaction (a straddle involves 2 transactions). If your straddle order had been for 2 contacts on either side, the commish would have been $1.50 per position for a total of $3

Even better, use a market order based on Yahoo quotes!

Taking any position in the market is risky so why single out averaging up? Averaging up is a good thing if you are riding a move. Ditto for a down move. If you scale incrementally and run a tight stop, only a gap will take all your profits away.

Good job! :)

Perhaps you need to include a dividend unadjusted chart including yesterday's close? Then maybe you'd have a clue what the OP was descibing?

Change in implied volatility and underlying price are the reasons that option premiums change quickly (time decay acts slowly). As others mentioned, what you observed was an ex-div date and that's already priced in.

As a player, Dykstra had a knack for being hit by the pitch. He brought that talent to option trading :)

The SEC investigation was sheer incompetence. 1/2 a dozen inquiries and examiners were sent in twice and Madoff lied through his teeth. Answers given to the first investigatory team contradicted responses to the second and there was no follow up on these inconsistencies. One hand of the SEC...

ROI is based on the > I < in the formula not some arbitrary profit level along the way. OK, so it's not flawed logic - maybe just some of that fuzzy math that politicians do :) As for locking in some profit via scaling out, no argument there. A fee per share broker is useful for that...

Clever but flawed logic. You first gain wasn't 100% because when the position was worth $150, it was up 50%. When it hit your $200 mark, the $50 of add'l profit was only a 33% gain. :confused: :D :p

Clearly you should mortgage the farm and take the other side of the trade. Black swans only exist in fairy tells and boogey man stories.

The best exit is with a profit.

Underlying volatility presents opportunity to trade. It's not an edge.

Your safe exit idea only works at/near expiration when time decay has worked its magic on the short calls and the UL has appreciated toward 35. If your underlying heads upward immediately, your position will incur losses right out of the gate. If it continues up, rising past your short...

Though only moderately familiar with futures (a bit of trading them), UL vs. its options is pretty much the same across the board. If your system is viable and you are a disciplined trader, the underlying is usually a better vehicle for scalping/swing trading. As someone mentioned...

Pesticide works well too! :)

$60 is really no big deal when you buy 1 contract. OTOH, a 100% loss is ... IF you do size.

It's plausible during any period where IV rises. . 2007 to 2009 was a high IV period. The present is a lower IV period. Both details are irrelvant since it doesn't matter what IV is when the position is executed as long as it rises afterwards. Therefore, to me it makes no sense that it...