Last two quarter, more precisely during earning season, I got into short term volatility trading with mixed success, well it is pretty much no gain and no pain either. It felt almost like a gamble, mostly betting with straddles. But my major complain is it is to infrequent, only 4 times per year,.. now today I bought near term (expiring tomorrow) ADSK options for just few cents just below atm, which means just probably about 5-6% movement should cause tremendous movement in price. Normally for straddle I sense based on my short experience, minimum of average 10% after earning call just to cover the loss on one side of straddle and it also looks pretty risky had the volatility not materialize.
So I thought to increase the frequency b buying a just one or two days prior to exploration and identify potentially volatile stock ( which means no longer a night before earning), that would increase the frequency to4 times per year to 12 / year. How does it sound? Does it look feasible?
So I thought to increase the frequency b buying a just one or two days prior to exploration and identify potentially volatile stock ( which means no longer a night before earning), that would increase the frequency to4 times per year to 12 / year. How does it sound? Does it look feasible?
