How does everyone feel about long ITM strangles on the likes of SPY, IWM and QQQ? I know theta is the killer but the known risk and direction neutral open is very appealing. Thoughts please. Thx
Long Strangles Anyone?
- Thread starter PennySnatch
- Start date
IMO: Similar to accuracy of predicting large increase in VIX! Akin to predicting earthquakes more than 1 hour in advance. No reliable data.
"Time keeps on tickin' tickin' tickin' into the fu-ture......."
If you're looking for action
, which sometimes I do when in a slow period, look at the weekly options.Ferret a very liquid, ATM long straddle on a high beta stock (you need a severe gyration), late Thursday afternoon (3:55PM). And make sure you close Friday morning before 10:30AM or risk losing the whole thing to theta
.If you're looking for action
Ferret a very liquid, ATM long straddle on a high beta stock (you need a severe gyration), late Thursday afternoon (3:55PM). And make sure you close Friday morning before 10:30AM or risk losing the whole thing to theta
I have not done this, but have heard it recommended.
(I know. That is pretty vague.....)
If I do one this week (things have been really slow this month, so far) I'll post Thursday. I do have my eye
on TECK (beta 3.6).That's "straddle"...
I got 'em confused too, early on.
But there was this gal, see........ a redhead with green eyes.........
As you rack up years of marriage, the sentiment goes from "straddle" to "strangle"
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