My option trades

Quote from falconview:

Well I´m closed out of my straddle and the delta adjustment. Both items minimum 1 contract testing trades. I ended up making $14 for all the work. That delta adjusting didn´t do anything good. Lost the commissions on that play.

I think I´m going back to straight buying. Fishing should be good, now the volatility is picking up.

Just have to have the patience of Jesse Livermore and do what he recommended. The money is made by sitting on your hands. :D

Still interested in selling the weekly straddle, but I dont know anything about margin requirements to SELL. Or what amount of contracts I might be able to sell. So I guess if I want to sell a straddle, I have to buy something. But what, without much risk on that side.
Anyway, I´m out, until I get an old fashioned regular setup for my standard working method.
More...

What I am telling you is that to sell ONE weekly 100-strike straddle and to buy ONE of monthly (or whatever duration) 100-strike straddle is EQUIVALENT to BUYING TWO 100-strike call calendars (or two put calendars). In reality, the straddle is a call AND put calendar at the same strike. Same-strike call and put calendars are equal.

All you're doing with the straddles in doubling the time spread. One call time spread and one put time spread. Dissect it.

It's less grief for everyone involved to take advice rather than constantly question it. You don't need to understand internal combustion to drive a car.
 
Atticus

Yes I get that part.

Lets say theoretically I want to sell a straddle short. As say a small retail trader with $5000, I´m wondering if the brokerage would reject it, as not enough margin, or something? I could try and see what they say? That would be one way. I just thought there might be a way of calculating it on here, that I did not know? And if I had to buy something, as in credit spreads, to make it valid, what would be a good choice, without being directional?

I agree with Kinggyppo. I´m dumb.
 
Quote from falconview:

Atticus

Yes I get that part.

Lets say theoretically I want to sell a straddle short. As say a small retail trader with $5000, I´m wondering if the brokerage would reject it, as not enough margin, or something? I could try and see what they say? That would be one way. I just thought there might be a way of calculating it on here, that I did not know? And if I had to buy something, as in credit spreads, to make it valid, what would be a good choice, without being directional?

I agree with Kinggyppo. I´m dumb.
More...

dude I am just messing with you. Its is frustrating to see you not understand some really important concepts. I am the same way with bonds if it helps, price and yield always confuses me. The reason I got pissed with you is that you seem to be looking for a grail. There is no grail at least not for a small retail trader. A big part of your problem is you have very limited capital so you are really looking for a home run, I get that too. Older wiser guys are trying to get you to hit singles. You have to have to understand VOLATILITY. Not in the way Atticus understands it but as an input. Its just how much price changes over time in simple terms but is extremely important to the industry. I really would like to help you more but this is your journey with trading. Listen to Atticus, one of the best. Have a great day!:)
 
Quote from falconview:

Atticus

Yes I get that part.

Lets say theoretically I want to sell a straddle short. As say a small retail trader with $5000, I´m wondering if the brokerage would reject it, as not enough margin, or something? I could try and see what they say? That would be one way. I just thought there might be a way of calculating it on here, that I did not know? And if I had to buy something, as in credit spreads, to make it valid, what would be a good choice, without being directional?

I agree with Kinggyppo. I´m dumb.
More...

There is a place for a short-straddle, but it's limited (IMO) to long durations in skew. An ATM straddle on AAPL may run $18k in initial req, but a 600/630/660 fly runs $1.2k in debit req. They have very similar exposure, yet the fly 1/15 the req and limited risk.

For your purposes it's ALWAYS preferable to choose the fly over the straddle. You really need to read something like McMillan or Natenberg at this stage. I can't tell you which is better as I've not read them, but either will get you caught up on 101.
 
Quote from falconview:

Well I´m closed out of my straddle and the delta adjustment. Both items minimum 1 contract testing trades. I ended up making $14 for all the work. That delta adjusting didn´t do anything good. Lost the commissions on that play.

I think I´m going back to straight buying. Fishing should be good, now the volatility is picking up.

Just have to have the patience of Jesse Livermore and do what he recommended. The money is made by sitting on your hands. :D

Still interested in selling the weekly straddle, but I dont know anything about margin requirements to SELL. Or what amount of contracts I might be able to sell. So I guess if I want to sell a straddle, I have to buy something. But what, without much risk on that side.
Anyway, I´m out, until I get an old fashioned regular setup for my standard working method.
More...

I thought you would learn a lesson when you bought something to adjust delta. Straight buying is just going to bankrupt you, but on the good side, the traders will love it, LOL. I'm not trying to be too critical, but if you're just going to buy stuff, you may as well buy lottery tickets, at least you might win sometimes. I'm serious. Buy a calendar, maybe. But sell strangles in this day and age would be my suggestion. Only adjust when needed.

And Jesse Livermore would never buy options. He would know better than to take the reward out of "risk reward."
Don
 
Kinggyppo

That was really nice of you to write that. THANKYOU.

It has been a worthwhile 4 days or so. The straddle was old hat and I´m not at all enamored of the strategy. My intent was to try and learn the delta neutral adjustment strategy.
Like any experts, familiar with their field over years. Both Don Bright and Atticus often assume you know things in a new concept. I appreciate very much their assistance. It has been fun, while the market topped out and was in the doldrums. I did finally learn how to do the delta adjusting. I was just disappointed that it was not what it is cracked up to be on various web sites promoting it. It apparently works for market makers. Though I´ve known a few shit their pants while I was talking to them on the phone. Back some decades ago.

That said, it was a good 4 days and I enjoyed learning something new and trying it out. Won´t be using it of course in the future, but now I know the mysteries. It was unfortunately a bit like trying to pull hen´s teeth. I´m reminded of trying to learn guitar runs from some expert. The little diddle with the thumb or the finger are all important. Or when I tried to teach some kid, how to plane a board on a wood boat strake, so later on, the caulking would fit in. It´s all in the nuances, or details.

Actually I feel quite warm about everything. Particularly with the tremendous effort both Don and Atticus have voluntarily taken, to keep me on the straight and narrow. Your comeback makes my day indeed. THANKYOU for the courtesy.

DON is adamant about SELLING. I tend to agree with him, just don´t know how, within the limitations of the account size. In the meantime, I do have a pattern trade that works, and will get back into that now the market has completed the turn. I´m having fun, I hope you guys are too?
 
Quote from atticus:

What I am telling you is that to sell ONE weekly 100-strike straddle and to buy ONE of monthly (or whatever duration) 100-strike straddle is EQUIVALENT to BUYING TWO 100-strike call calendars (or two put calendars). In reality, the straddle is a call AND put calendar at the same strike. Same-strike call and put calendars are equal.

All you're doing with the straddles in doubling the time spread. One call time spread and one put time spread. Dissect it.

It's less grief for everyone involved to take advice rather than constantly question it. You don't need to understand internal combustion to drive a car.
More...

Good point, I keep saying to stop making this so darn complicated. Even on the stupid Series 7, if you just understand what an option is and does (over time and price of underlying), you'll likely pass. It's nice to help, and I love doing it, but when they don't listen, well....

Don

Also, mr. falcon. If a car costs too much money, but runs, and another car is allowed by your broker due to your account, do you really buy the car that is up on blocks? Hell no, you just take the bus, don't buy anything without a plan. That straddle better be good, or the calendar spread. But if you can't afford to sell options, you likely never will if you lose buying stuff.
 
Quote from falconview:
DON is adamant about SELLING. I tend to agree with him, just don´t know how, within the limitations of the account size.
More...

Two words:

Credit Spread
 
:D

Well! Well! Well! The rooster speaks. Good going Forex Forex.

Just been looking at the option chain. Could do two. One for this week expiring on Friday and one for over into next week, expiring next Friday. A look at my indicators say we may actually be able to implement a credit spread each time. Going to have to wait for any turn to make it complete. Seems to be trying to decide to turn or not. On the hourly chart. Looking at around selling for March 64 @ .63 cents and 23 cents buying. The weekly for this week, is sell 33 cents and buy 4 cents. 64 strike.

Will wait and see and think on it, as the market makes up it´s mind.

Good call Forex Forex.
 
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