Top of Today march 24

Quote from riskfreetrading:

Dennis,

Could you share about how your straddle on VIX did today? Vol is up, so your straddle should be up. Also, since it moved the straddle may have gained. Is this correct?

PS: I re-read my last post to you in this thread, and I noticed few typos. I did not check my post after posting it. Pls replace in various places the word "you" with the word "your". If you want me to repost it, I will be glad to do so.
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Your last post was fine. Anyway my straddle gained about $200 today and I just closed it out. It was on 25 contracts. I'm a little upset I covered with the put yesterday. I was spooked and i closed out the whole position because it's not the way i ever trade so i didn't really know what to expect. I usually only deal with calls, they are much more liquid. Check out open interest. It makes sense because most people use them as disaster hedges. My regular strategy is to sell 30/32.5 call verts when volitility is high, and buy straight up calls when we fall below 10 DMA. It's been very easy trading, worst part is pulling the trigger on selling verts when Vol is high, but if i ever get too scared or expiration is coming i can usually roll to next month for credit.
Now i'm hoping for a few more good days to let me get back in on those calls. If vix goes over 28 I sell vert.

also if you ever hold calls you can usually count on a run up right at the end of the trading day as traders protect themselves overnight. This happens a lot more than you would think.
 
Quote from HedgefundTrader2:

Despite all the wranglings in the past week by the Feds and massive rate cuts, saving Bears & Stearns and opening floodgates of liquidity its a pity that you are oblivious of the state of affairs and still thinking in those dark days of January when things were dark and gloomy.

Somebody not having a sense where things are going and shorting a rallying markets is a insane gamble. You do not possesses any Technical Analysis background either, you cannot see all major indexes are above 50 day averages and flattening out which will act as support and would be hard to short. DJ Transports and Nasdaq clearly in a bullish spike on heavy volumes.

Just keep beating the same drum and keep losing your shirts. Shorting is hazardous in this zone, do it on your own risk.
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DAY9993 or what ever your name was before you changed it why do you continnue to post that shorting the market is risky, everytime you mention how risky it is it drops another 5%.....

DOW off 100+ points today, how were those durable good orders :p and how about those housing numbers today, new home sales hit 13 year lows :p , come on, show me where the bull is........

My DXD purchase at $54.10 is doing good, closed today at $55.66

Also added some more inverse funds today as well......
 
Quote from DennisR:

Your last post was fine. Anyway my straddle gained about $200 today and I just closed it out. It was on 25 contracts. I'm a little upset I covered with the put yesterday. I was spooked and i closed out the whole position because it's not the way i ever trade so i didn't really know what to expect. I usually only deal with calls, they are much more liquid. Check out open interest. It makes sense because most people use them as disaster hedges. My regular strategy is to sell 30/32.5 call verts when volitility is high, and buy straight up calls when we fall below 10 DMA. It's been very easy trading, worst part is pulling the trigger on selling verts when Vol is high, but if i ever get too scared or expiration is coming i can usually roll to next month for credit.
Now i'm hoping for a few more good days to let me get back in on those calls. If vix goes over 28 I sell vert.

also if you ever hold calls you can usually count on a run up right at the end of the trading day as traders protect themselves overnight. This happens a lot more than you would think.
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I am glad you made money! I always feel good when I hear others making money. I have to check these VIX options. What you do sounds good and logical. Also do not get upset for what you did yesterday. The important thing is that you made money. These little change adds up a lot. So do not listen to anybody as long as you are making money, as this may corrode you mind.

What is your trading experience in general, and options in particular? I think you know this, but just in case you do not, the main thing I would say is to make sure not to allocate too much(say 5%) of your capital to anyone trade on buying options.

Cheers
 
Quote from DennisR:

hedgefundtrader:

Thanks for explaining an iron condor to me. lol.

Maybe you can figure out a slight difference between scalping .10 cents in an hour and selling iron condors and waiting for time premium to pay.

I never said the market is going to retest lows this week. I said i want to scalp .10 friggin cents on a small pullback. You kind of sound like an idiot. Maybe you were joking?
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I have very few positions on these days, yet my theta calculated by my options softwares comes to $487.00 / day. That is like somebody stuffing $487.00 into my pockets every morning when I turn on my computers...I donot have to scalp its handed down to me day in day out 7 days a week including weekends.. sometime back it was lot higher..

Learn how to use options as a part of your trading skills..
 
Quote from S2007S:

DAY9993 or what ever your name was before you changed it why do you continnue to post that shorting the market is risky, everytime you mention how risky it is it drops another 5%.....

DOW off 100+ points today, how were those durable good orders :p and how about those housing numbers today, new home sales hit 13 year lows :p , come on, show me where the bull is........

My DXD purchase at $54.10 is doing good, closed today at $55.66

Also added some more inverse funds today as well......
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A pullback on low volume after a rally is normal. Hope you were able to scalp few pennies in the wake.. It was not a vicious sell off on heavy volumes. Its more of a nice tight pattern consolidation for the next leg up..
 
How much money do you run? I agree with you on positive theta and also on low volume. However I have two comments:

1. What makes you think that one cannot be BOTH short (for instance IWM) intrinsic and be positive theta (answer: sell the ITM call for a down move).
2. The sell offs usually take place after the first day in red. It takes people sometime to accept losses, after buying at the top. Indeed the visit to the lows today was showing support.
Thursday is the real test. Will it be a distribution? I am betting yes. I am short OTM calls, and the clocks are running for the longs. I always try to get out of ITM options at the end of day to avoid gaps in case of short ITM puts, but if I stay theta is working.

PS: How much money do you have if I can ask? I could calculate it backward by looking at 90% condors and their theta, but if you tell it will save me the trouble to do it.
 
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