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The last paragraph is the most important observation you may have made in more than a week. OEX was between the two strikes. It means the puts and the calls both have only time value left in time, and the clock is getting close to stop. When OEX heads towards the put, it gives life to the put...

Falconview: An example that may help in understanding straddle better. Yesterday, I thought Friday would be horizontal action, and that QQQQs might be pinned at 45. At the time, QQQQs were at 44.80 area. The 45 straddle on Thursday afternoon was: 0.20 for calls, and 0.40 for puts. Total was...

+1

Today is expiration. You may want to watch what is known at pinning: price of major indices beginning pushed to round numbers or between two round numbers. The corresponding short straddles and short strangles would then see their premium decrease the whole day.

Maverick: 1. I think the leverage EFTs are better for scalping because the people in there are not experienced, and it easier to catch the new fish. 2. I find that bond futures are good for scalpers, but may be newbies do not know what they are. PS: Did you read my offer on the other...

For fun and for some truth: do you really think longs have the funds to take delivery ? Is it not all just a leveraged position :) You have deep pockets Martinghoul if you can take delivery.

This is very powerful insight. Thanks for sharing. I like the idea that we know that the longs have to close by expiration (particularly the speculative longs). We also know they would sell because they have a profit, and would not risk let it go. I like the combination of the deadline, and...

Big D, Martinghoul and others: Is it possible that the yield of the 2's get negative? I am asking because I just found out that I got filled on an order I did not cancel on the 2's that was at 109'225, and I want to double check whether the assumption of positive yield is something I should...

I checked the bond market. Treasuries are trading at 109'23. This is almost "insane". People are lending money for 2 years at less than 0.5%? I am going to short them. Wish me good luck folks, as I may lose 1%, which is still a lot for the size of these futures. This is assuming positive...

I looked at SPY chart, and I doubt 110. How about a short 109/108 strangle?

I am thinking that for Qs they will try to pin 45. Since it is in the red, and since I am a chicken, I decided to sell the straddle expiring not this week but next week. If I want to sell tomorrow's straddle, I can always do it tomorrow morning. Here is the issue. If it stays below 45 today...

It depends on which straddle, and when.

TJ Shortie Out (for Thursday's action) :)

That was the top in stocks. Bond market blinked first. Gap of two days ago closed. I expect sideways tomorrow. Falconview: I will read your post later. My impression based at what I have seen so far from you is that you are good at direction. Why you do not sell calls to play down, and sell...

AUD/USD is now in 0.8910 area. Covered. 0.9016 was the top.:)

4:46AM: It is now at 0.9000. I am getting ready to short it between this price at 0.9016.

I would take profit here. It is now at 0.8996.

We seem to be opposite. It is around 4:AM. I would buy it at 0.8965 for a quick rise, It is no at 0.8965.

Michael: Congratulations! I assume it is a paper trading account. If it is live account nothing I write in here should be used/attempted/etc. Do not make the mistake to make a live trade until you fully understand the risks. Your capital is a critical asset. Now the easy stuff: Never make...

Did you notice that QQQQ fell around 1% after the close. Maybe some earnings. So Thursday may lead to a close of the recent gap, and then a boring Friday?