Trading Long Straddles

Quote from kinggyppo:

es is the future contract from the link I sent you. It expires every few months, there is also spx contract known as the big due to the large tick size, this is a contract traded by institutions and deep pocket locals. spy is more like a stock and is what you should focus on. You can lose your house trading futures if you do not understand margin.
spy and its derivative options are extremely liquid. I have seen many times someone drop 5,000 lots and not move the bid one tick. You can't beat spy in terms of liquidity. Es mini is heavily traded by all the players, retail institutional etc. spy and es are two different animals.

http://seekingalpha.com/article/172876-driving-the-s-p-500-cash-index-spy-vs-es
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nice, and for falcon, due to interest rates there is a +/- spread compared to cash that narrows to 0 by expiration.
 
Ahhh! Interest rates.

You know after spending two years messing with spreads and learning GREEKS, and volatility trades, Gap trading. credit spreads, debit spreads, long straddles and all that other stuff about selling premium is better and everything.

It is just nice for this simple character, to just buy straight forward, option contracts and forget all that complicated stuff. Other than mildly curious, I think I´ve burned out on complicated trading deals. Now all I have to do is make a profit each trade, if I can. Much simpler. A whole lot faster in finding out if you did it right or wrong. Far as I can see so far, a whole lot safer too.
Somebody once said, the death of a thousand cuts, and I laughed about that. That complicated stuff is sure that.
 
Quote from falconview:

Ahhh! Interest rates.

You know after spending two years messing with spreads and learning GREEKS, and volatility trades, Gap trading. credit spreads, debit spreads, long straddles and all that other stuff about selling premium is better and everything.

It is just nice for this simple character, to just buy straight forward, option contracts and forget all that complicated stuff. Other than mildly curious, I think I´ve burned out on complicated trading deals. Now all I have to do is make a profit each trade, if I can. Much simpler. A whole lot faster in finding out if you did it right or wrong. Far as I can see so far, a whole lot safer too.
Somebody once said, the death of a thousand cuts, and I laughed about that. That complicated stuff is sure that.
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someone was pointing out that there is a cost of carry in futures. interest rates which are low, don't let them confuse you. Are you long or short right now?

http://indexarb.com/fairValueDecomposition.html
 
I´m short holding PUTS. Should have held longer before entering. In hindsight I can see my mistake. Still until a breakout above resistance I´m going to hold. Still some time left in this week to get my move.
 
there is a double top on spy on the 60 minute, that said you should be thinking about where to cover if the mkt goes against you. Good trading.
 
Double top on SPY, means down. In QQQ I´m getting that now. Guess I´m going to hold overnight looks like.
I´m about a dollar negative now, so my - $700 reduced to - $400.
If the QQQ will move another strike down, I will be okay. Going in the right direction anyway.
I need it to reach the mean regression, midway to break even. Looking good so far.
 
Man o´man! I´ve not been able to switch from DAY TRADING with a winning system, to overnight multiple day trades as required by the EXCHANGE.

I´m on a ruddy losing streak that is hurting bad.
 
This has been a tough market to trade, are you trading options? longs are tough due to high vol and you can't short sell without large $$$
:)
 
Yeah I´m trading QQQ options. If I was still doing my day trading I´d be making out like a bandit. But they have warned me off as a DAY TRADER, or PATTERN TRADER. Can´t take a quick profit each day. By day trading with more contracts it was really getting good. Then I ended up doing 4 trades in a week, and they lowered the boom. Overnight multiple days is a different strategy or kettle of fish. Haven´got it yet!
 
Having an argument with an accountant. She insists that I will only pay 15% on profits for short term index option trading. I have been told 40% by somebody on here. Now I´m really confused?
 
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