London Bridge

[SteveM]

IF there is a gap down, then it's basically free money (gift from above) to those who go long for the rebound

...be careful when people start talking like this.

 

[lawrence-lugar]

...be careful when people start talking like this.

Always be Careful in the market. Period.

It's when you start Assuming things and overthinking things...that your trading acct can start to dwindle,

The market is part art, part science...ever so more true the shorter the time frame -- or day viewpoint,

 

[java]

You could buy an ATM long put
And an ATM long call
And you would make money no matter what it does.
All you would have to do is guess how volatile it will be.

 

[dumpdapump]

Maybe time to overthink your risk management and position sizing?

Phew! I'm very long and was mildly concerned for a second, lol

 

[dumpdapump]

Buy and long as well as Sell and short is the equivalent in trading parlance. And going long an atm straddle makes only sense when you estimate future realized volatility to be larger than the volatility implied in the straddle components, roughly speaking. "all you would have to do... " is a term generally implying an account riddled with losses.

You could buy an ATM long put
And an ATM long call
And you would make money no matter what it does.
All you would have to do is guess how volatile it will be.

 

[java]

then if that doesn't work you could just do the opposite
Sell the atm put
Sell the atm call

It makes money either way.

 

[dumpdapump]

Right, then everyone should do it, right?

Are you aware that what you are saying does not make sense whatsoever? Just wondering...

then if that doesn't work you could just do the opposite
Sell the atm put
Sell the atm call

It makes money either way.

 

[Eddiemorra]

In lieu of like, a 2nd 9/11, I wouldn't worry about the markets coming down.

 

[java]

Right, then everyone should do it, right?

Are you aware that what you are saying does not make sense whatsoever? Just wondering...

It makes as much sense as trying to guess what the market will do makes. I don't see how guessing what the volatility will be makes any less sense than trying to guess the direction.

 

[murray t turtle]

In lieu of like, a 2nd 9/11, I wouldn't worry about the markets coming down.

%%
Remember the charts, on that move,[9/11] EddieMorra??
The downtrend bear market reversed,[SEPT 2011,aka 9/11] to an uptrend bull market [S&P 500/benchmark /SPY, monthly candlecharts.] Panic sellers never win ; planned sellers can win. Not a prediction.