straddle options
- Thread starter met1989
- Start date
It is not quite that simple. There is an interplay between hi/lo IV and its stat IV as well as its ranking over a period of time where you need to discern tops/bottoms. Then there is term structure where you need to pick 1 month over another, taking into consideration cycles, special events which might explain current phenomenon. Once you take all those in, then and only then can you even approach a good guess to your 2nd question. Please read up books by Jeff Augen, L. McMillan, S. Natenburg as well as sites that provide options education.
Your broker's software should have scanners for that. Otherwise change the broker.
Selling straddles may be good, but each circumstance is different and you can't get professional answer in a few sentences on a forum. Use Google, YouTube, read books, learn, test, experiment, win, lose.
Backrest. Without doing that you are completely blind.
You are only slightly less blind after you have backtested but it's better than nothing
One of the most underdiscussed parts of options trading is the pnl equity curve inherent in each position. With straddles, you need to have the psychological makeup of being able to "gut out" a 1 step back daily in return for a 10 steps up 1 day(possibly)...when the ticker explodes in price or in vol? Zenostiffler has a good sugggestion.. backtest to discern edge AND also discern whether this pnl curve is your cup of tea!
I had
I had this with a position now the curve was not for me how can u lower the edge ?
what do u mean " lower the edge"?
lets say if i do an iron condor if volatility hits the stock prices start to go wild i want a strategy that is good for my heart rate
tough question... tons of stuff here on condors and flies and when/how to adjust. Some peeps use position sizing so they dont have to adjust and just consider it as a terminal distribution play.. some like the process of adjusting, rebalancing the strikes,etc.No single answer.. sorry
some are willing to play the actual underlying movement, putting on a spread then slapping on a "lock" after getting the desired move,etc. You have to start with learning the basics initially.
some are willing to play the actual underlying movement, putting on a spread then slapping on a "lock" after getting the desired move,etc. You have to start with learning the basics initially.