Trading Long Straddles

[falconview]

Eduamon

Don´t know calculas. I like the graph of he Put_backspread-increasing volume though. Volatility and volume often going together. Where did you get that?

 

[falconview]

I just looked up that PNL graph examples. What got me very interested is how X was at the intersection of the curving lines and the straight line graph. How you figure that I don´t know?

I think I just got put back a grade from Options 102 trainee to Options 101 novice.

 

[eudaemon]

Quote from falconview:

Eduamon

Don´t know calculas. I like the graph of he Put_backspread-increasing volume though. Volatility and volume often going together. Where did you get that?

There is no volume referenced in that chart. I think you are headed to remedial reading summer 101...

It is all VERY SIMPLE. It is in fact so SIMPLE that it hurts. Really.

 

[falconview]

I like simple, but feel chagrined ( see I wrote that without a dictionary ) that I do not know enough.

 

[falconview]

i was looking up the put backspread on the internet, and the graph example said it was a put_backspread_volume increasing example.

You may not have had it on your example graph.

I´m currently running three trade methodologies.

Straight buying but continuously in the market. When you close your reverse.

What I think your Eudamons put backspread system is. At the moment I have been experimenting with targets in SPY to take a profit and add another straddle. So far in 3 trades I have earned +$58, +$38, +$38. Using index targets to close the winning trade and put on another spread. The first one, I had a profit on both sides, so closed both. The second one, only was winning on calls and the third one was winning on calls only. So I am holding two sets of PUTS. Using 2 contracts in SPY. I am not at all sure this is the right way to go about it? I have sort of a mix of the mechanical method and your method.

I am also trying out a new method of trading the trend. I cashed it in early in the morning for $18 net. But am keeping track of it, as if I was CONSTANTLY IN THE MARKET with a new indicator. That new method is up $134 so far.

 

[eudaemon]

Quote from falconview:

i was looking up the put backspread on the internet, and the graph example said it was a put_backspread_volume increasing example.

volatility, not volume... remedial reading summer 101 it is...

http://en.wikipedia.org/wiki/File:Put_backspread_increasing_volatility.png

 

[eudaemon]

Quote from falconview:

But am keeping track of it, as if I was CONSTANTLY IN THE MARKET with a new indicator. That new method is up $134 so far.

I wonder what gadget that is...

 

[falconview]

Seems to be much the same, volatility picture and the volume picture?

I wonder how you get this graph in real time for something you are trading? Does it come up on an option calculator? I was looking for position X.

 

[falconview]

With my new hourly indicator reversal, I almost thought I had a signal for a reversal, but apparently not yet. For the being constantly in the market with either Calls or Puts.

 

[falconview]

For the long straddle, volatility trade, almost reached BREAKEVEN counting in the commissions. Maybe the volatility will pick up whenever it starts a bear drop?