Kudos to MMs

Quote from shortie:

Date Underlying Close Open High Low Close Volume
Call: 7/26/2011 1331.94 37.00 39.85 36.00 36.00
Put: 7/26/2011 1331.94 33.40 36.00 32.00 34.00


Call: 8/2/2011 1254.05 12.70 13.00 7.00 7.00
Put: 8/2/2011 1254.05 61.90 76.68 61.90 76.68


the straddle is holding well, but under water: 72->83.68

p.s. i agree it was a good trade and will work out nicely in all likelihood.
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Uh, dude, that straddle recommendation was made long ago.... The calculations you have presented are just for the past week.
 
Nothing to do, will work out of the trade into a L 1240 SPX C, probably the Oct or Nov expiry (or equivalent SPY or ES option) when the chance presents itself. Profit target is 1320, but given where "FV" is, even that is way too conservative. 1372 is the real target I have in mind. Stop loss changes to, 1238. Will add long at 1272 and 1292.
 
Quote from arbs-r-us:

Uh, dude, that straddle recommendation was made long ago.... The calculations you have presented are just for the past week.
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i guess we will never know for sure since I can't find you mentioning Sep straddle prior to July 26 2011. but i will give you the benefit of the doubt.
 
I am finally green on the day. Let's see if the market builds a base to add longs to (both the VIX puts and the SPY calls). I am looking to add longs at 1272, 1292, 1300,1320,1342. I may also add at 1260 ish. But let's see...
 
You know, the asymetry of the entries still bother me a little bit. As the market goes in our direction, we pick up deltas, and as the position goes against us, we slow down our deltas. That is good from the point of view that when we are right, we want to add (deltas) to our position - i.e. "adding to winners", and when we are wrong, we are trimming our position. That this happens automatically with long options is awesome. On the other hand, mistakes are more costly as the position evolves for exactly the same reason. I guess I can't have my cake and eat it too... :(

Maybe all adds should always be done in pairs, but what pair...
 
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