atticus' "ship it" vol trading journal

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Quote from ammo:

in hindsigt but it's theoretical anyway, your short the 600 call long the 660 call,short the 660 put long the 600 put,today the long call is losing money,you take it off and put it back on ,or your losing money on the short 660 put,take it off and put it back on,go home neutral overnight,just scalp in and out with the direction of the move,the short call spread is making money,you lift the short put,put it back on at a better price, by expiration you may have taken 20 points out of it,always going home neutral
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I've traded a lot of boxes with rates >5%, but your stating to trade the verticals with the trend, and cover by day's end to go home flat (back in the box)? To what end? Why not simply trade in/out of an individual vert?

Just curious as I think I may have misunderstood.
 
Quote from atticus:

I've traded a lot of boxes with rates >5%, but your stating to trade the verticals with the trend, and cover by day's end to go home flat (back in the box)? To what end? Why not simply trade in/out of an individual vert?

Just curious as I think I may have misunderstood.
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And if you are trading delta, why even trade a vertical? Why not just trade spot or the one leg of the option?
 
Quote from atticus:

I've traded a lot of boxes with rates >5%, but your stating to trade the verticals with the trend, and cover by day's end to go home flat (back in the box)? To what end? Why not simply trade in/out of an individual vert?

Just curious as I think I may have misunderstood.
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when i posted the original the call vert was 36,it's now 33, aapl was 655 area,thats the gist, going on memory ... 600 call trading at 53,low was 44, today
 
Quote from MentalTunnel:

Are you assuming that we will get a smile effect with an increase volatility or that just one wing of the the fly's volatility will substantially increase depending on the earning's announcement direction?
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Not referring to any "verticality" of vol, only that the entire strip will fall. Not a skew trade. If it were I would be neutral to say 600 and long underlying.

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Quote from ammo:

when i posted the original the call vert was 36,it's now 33, aapl was 655 area,thats the gist, going on memory 600 call trading at 53,low was 44, today
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Sure, the bear call spread worked. I am wondering why you would want to carry the box. IOW, why not just go home completely flat and traded into the vertical as you see fit. If you're in the box and you cover the bull puts you're left with the bear calls. You win on the bear calls and convert BACK to the box by the close...

Why trade the box at all? Why not start with zero position and trade verticals intraday? I realize it doesn't hurt beyond the initial edge loss on the box, but I am wondering if you're stating there is an advantage to holding the box.

I know you're busy trading so I don't want to belabor the point, but it's akin to holding long EURUSD in one account and short in another. A "grid" trade as it were.
 
Quote from cdcaveman:

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I know what a box is... so your scalping the shorts on a box depending on price action
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yes, with a simple in out rule,stick your toe in, if the water's cold,pull it out, if the waters warm go for a swim,with the 3 legs you are always close to shore,if you had a target,20-22 on a chart i posted somewhere on et you could have legged out of the long call and short put and closed at target,advantage is you are already in, no thinking or missing the trade,just lift a leg,if wrong put it back on
 
Quote from atticus:

Sure, the bear call spread worked. I am wondering why you would want to carry the box. IOW, why not just go home completely flat and traded into the vertical as you see fit. If you're in the box and you cover the bull puts you're left with the bear calls. You win on the bear calls and convert BACK to the box by the close...

Why trade the box at all? Why not start with zero position and trade verticals intraday? I realize it doesn't hurt beyond the initial edge loss on the box, but I am wondering if you're stating there is an advantage to holding the box.
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again on memory but i think cave asked how to play the volatility pop if we were going to get one..
 
Same question I have.Why trade the box??



Quote from atticus:

Sure, the bear call spread worked. I am wondering why you would want to carry the box. IOW, why not just go home completely flat and traded into the vertical as you see fit. If you're in the box and you cover the bull puts you're left with the bear calls. You win on the bear calls and convert BACK to the box by the close...

Why trade the box at all? Why not start with zero position and trade verticals intraday? I realize it doesn't hurt beyond the initial edge loss on the box, but I am think that you're stating there is an advantage to holding the box.
More...
 
I havent used it in years but back when you could trade options for 7-9 cents commish,you could put on a huge position for a margin credit and trade in and out of it,going home again with no margin ,again theoretically but 22 was the mid target in aapl, the goal target was 600-605,aapl at 655 roughly when 1st posted, hence the 660/600 box
 
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