On breakouts I buy straddles , profit is made when you catch the big moves , by letting options expire .By closing early winners are cut for much poorer results .Old saying "make hay when sun is shining " In trading " ride the market tides fully , when you are on high tides ".
Investing in stock market indices via option spreads beats buffet?
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On breakouts I buy straddles , profit is made when you catch the big moves , by letting options expire .By closing early winners are cut for much poorer results .Old saying "make hay when sun is shining " In trading " ride the market tides fully , when you are on high tides ".
?? This makes no sense whatsoever... do you trade the bfly or straddle vs strangle?
They are limited rewards strategy , but the advantage is consistent profit on indices .By selling at the money , that premium reduces my risk but also my reward.I am looking for investing 3 monthly spreads i.e receiving 3 months premium .Reward on premium should be approximately 10 % a quarter , if entries are split 50/50 at several MAJOR supports .
Instead of call spreads , a call itm or atm may generate much greater reward ,if left to expiry , but you have the risk of non performance.Long Calls may be more suitable for trending instruments.The rewards should much greater and superior to covered calls
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I have a butterfly strategy , buying lower call , selling 2 atm and buying call higher out of the money .This is at least two months to expiry , before expiry if the short trades "2 atm " are making money , I will close them , and run remaining part of butterfly , by taking risk on remaining positions
Okay, so you buy the bfly, you're not writing it..
But why do you close the part that gives you directional hedge... with this you basically always end up betting in an upwards direction... (with the call fly that is).
I close it because it made profit , now after closing , my potential reward is increased .U S stock markets are well supported with circuit breakers on wall street to fed puts to keep stock markets higher and the money printing of western central banks.
I don't want the hedge , I want profit
rolling over losses
if it goes wrong , i will buy a spread to recover loss , i can't lose
if it goes wrong , i will buy a spread to recover loss , i can't lose
@TRADING EDUCATION BUYER you said on another thread you don't think options should be traded directionally... "This direction bit on options does not work..."
What's your deal mate...
What's your deal mate...