Riskarb's combo to fly conversion journal

Well longer-term may mean weeks instead of the short time frame here. For example many stocks hit lows in their IVs in the trough between earnings- GOOG is great example. So you get in at a point like that and then perhaps in two weeks sell the straddle as long as IV gains outweigh theta.

Quote from riskarb:

Yeah, not a bad idea to replicate vols in such a way, but you'll be long vega and short gamma based if trading equal positions. I can't tell you exposures as I don't know your idea of "longer term" -- just an idea, but I would err to trading similar term-structures.
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I thru on a candidate WMFI into my paper trade account (a few days ago)...i have a put calendar (for real) however its not great (as a candidate) as earnings are going to be reported next week so the vols should continue to rise...also it looks like insiders/market think reports will not be so hot...drifting down...
 
Quote from DonnaV:

I thru on a candidate WMFI into my paper trade account (a few days ago)...i have a put calendar (for real) however its not great (as a candidate) as earnings are going to be reported next week so the vols should continue to rise...also it looks like insiders/market think reports will not be so hot...drifting down...
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I am on the other side of a trade here , took MARCH 90-95 straddle today
 
straddle or strangle? almost 20 pts above today? very bullish I guess...my cal is Feb/May 72.5 and I think it gets pinned at 72.5 in Feb (I hope:) )
Quote from IV_Trader:

I am on the other side of a trade here , took MARCH 90-95 straddle today
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Quote from DonnaV:

straddle or strangle? almost 20 pts above today? very bullish I guess...my cal is Feb/May 72.5 and I think it gets pinned at 72.5 in Feb (I hope:) )
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sorry , long 70-75 MAR strangle
 
Quote from optioncoach:

Well closed the books on my straddles:

OIH $150 Straddle @ $11.00
Closed @ $9.55
Profit (net commish) = $852.08

ACL $130 Straddle @ $10.15
Closed @ $8.75
Profit (net comm.) = $658.03
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Why did OIH straddle dropped ? Was it because of vol dropped or theta ?

Same questions go for ACL. For ACL, I thought the vol will keep increasing because of earning.

Thanks
Nick
 
Quote from IV_Trader:

I think you will do OK on ACL , the iv is already above the pre-report top of 35. Report is on 2/8
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shakan , read the above about ACL... This was a very good short
 
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