atticus' "ship it" vol trading journal

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Quote from IV_Trader:

same here...13.15 and will average down
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ask you a question about this.. can i strangle linkedin to get a similar exposure.. i don't wanna put out to much money on this trade.. but i think its a good one.. what happens in a straddle when the underlying moves way away from the atm strike before earnings.. ? is their adjustments to this

and as well isn't it better to buy straddles on bounces up of the stock
 
Quote from cdcaveman:

ask you a question about this.. can i strangle linkedin to get a similar exposure.. i don't wanna put out to much money on this trade.. but i think its a good one.. what happens in a straddle when the underlying moves way away from the atm strike before earnings.. ? is their adjustments to this

and as well isn't it better to buy straddles on bounces up of the stock
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sure , strangle will work

Adjust via buy/sell stock or let the deltas run ( and pray that price won't reverse)
 
Quote from IV_Trader:

I wonder what GOOG vola will be after they open�usual total crash a la event is over or not ?
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Big miss on the EPS, $9.03 vs expected $10.58 (-15%).
 
Quote from atticus:

I'd think it will react much as if it had happened AH and the ensuing vol-drop at the open the next day. It will be nice to be able to get something off today when it opens.
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MSNBC keep on mentioning "real report" later...lol , thats why I am wondering about vola. Usually , the vola crashes to 20 after report...we will found out soon

The drama
 
Quote from IV_Trader:

sure , strangle will work

Adjust via buy/sell stock or let the deltas run ( and pray that price won't reverse)
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i've actually never delta hedged.. i'm sure i would need to know how much could possiblity be required of my account if i did that.. right now the 105/110 strangle has a delta of .0107... you need literally only one share long to hedge that.. the 105 straddle is at 13.5 deltas.. i can afford 1 delta.. haha

so are you delta hedging the straddle to?
 
Quote from johnshepherd59:

I just bought the LNKD november straddle for 13.1. Expectation is for 16+ right before earnings. It might go lower a little bit, but I will average down if that happens. No need to even scalp because 13.1 is too low. LNKD straddle has consistently been above 16 before earnings. Last earnings, LNKD went up more than 16% after announcement. So, IMO, LNKD straddle is undervalued.
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13 is a better price than 14. I'm waiting for 11. If it doesn't get there then I won't buy. 13 is fair in my opinion.
 
Quote from cdcaveman:

i've actually never delta hedged.. i'm sure i would need to know how much could possiblity be required of my account if i did that.. right now the 105/110 strangle has a delta of .0107... you need literally only one share long to hedge that.. the 105 straddle is at 13.5 deltas.. i can afford 1 delta.. haha

so are you delta hedging the straddle to?
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Multiply that delta value by 100 to get the position delta. A low enough delta doesn't need to be hedged that tightly. It's probably futile, as it's pretty difficult to dynamically hedge with a smaller account due to transaction costs, etc.
 
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