How long is your holding time of individual options-trade ?

[HowardCohodas]

Quote from OddTrader:

Interestingly, how about the conventional wisdom that "Let Your Winners Run and Cut Your Losses Quickly"

Any comments?

When to exit a trade has fascinated me since I read the book It's When You Sell That Counts by Donald Cassidy. I have the first edition published in 1994. I notice it is now in its third edition. It not only fascinates me but challenges me as well.

__________________
Author - "These Seven Trading (Investing) Secrets Will Explode Your Account: All I Know About Trading (Investing) I Learned in Flight School"

 

[chartman]

Quote from OddTrader:

North American Securities Administrators Association (NASAA, a consumer protection group trying to keep the futures industry honest)

The NASSA is an organization for the state regulatory agencies that enforces the state's laws and regulations concerning the registration of securities and people such as brokers and advisors involved in the securites industry within their state. They are not a 'consumer' protection agency as such except in their role as a regulatory agency. They have no authority in the regulation of the commodities futures market.

 

[TheoHornsby]

Quote from OddTrader:

Among the statistics that I make sure traders keep is the average holding time of positions. Holding time also determines the opportunities available to traders, as markets can be expected to vary more in price over a longer time period (multiple days) than over a shorter one (multiple minutes). (The reverse side of that coin is that holding time is a determinant of risk, as drawdowns are likely to be larger on positions held for multiple days vs. minutes). Your typical holding time is an essential part of your trading personality and, ideally, is also a key ingredient in your trade planning. Knowing the expectable volatility of the market for your holding period can be invaluable in telling you when to get out of the water.

Shit happens in the market so all of this is babble. Stats are irrelevant when price is moving now or later.

 

[ClimbingMel]

It so depends on the type of trading. I trade options that are a close to expiry to gain the rapid lossof time premiun in those last few days. I write options and then if the stock move with me or stays put, I'm up the premium. If it move aganst me I get the stock (long or short) and then usually just write options against it or sell/cover the shares. So for me, I hardly ever hold ptions more that a week... some trades I go a month.

 

[thenmmm]

usually a few days - taking advantage of theta...

 

[dagnyt]

Quote from OddTrader:

Just curious:

How long (expected/ actual; average/ range; minutes/ hours/ days/ weeks; buy/ sell/ spread; etc.) is your holding time of individual options-trade?

Have you ever changed your holding time significantly? What were the major impacts?

Unless you state a specific type of trade, the question is meaningless.

A trade for a scalp can never have a holding period similar to that of an iron condor.

Mark

 

[HFStartup]

When selling options (during periods of mid to high volatility) the average time held is 45 days. When buying options (during periods of low volatility) the holding time is substantially longer. I want to diminish time decay and have plenty of time for something unexpected to drive up volatility, so I buy options atleast 6 months out and hold them. They cost more, but the resistance to theta is worth it.

This is fairly basic, but as an options trader I find myself trading volatility rather than price. It took me a while to learn that...

 

[OddTrader]

Quote from dagnyt:

Unless you state a specific type of trade, the question is meaningless.

A trade for a scalp can never have a holding period similar to that of an iron condor.

Mark

Outstanding comprehension, truly meaningful indeed!

 

[rew]

Quote from dagnyt:

Unless you state a specific type of trade, the question is meaningless.

A trade for a scalp can never have a holding period similar to that of an iron condor.

Mark

True. I've held leaps for over a year, and I've done one day scalp trades. My credit spreads are usually held (short) for 3 - 6 weeks.

 

[SWScapital]

Day trade ES options - usually a couple hours to be proven right or wrong.

Swings in ETF options are typically 1-2 weeks going into expiration. 99% of those are naked sales.


Where do I pick up my free toaster now?