Trading Long Straddles

Parliament. On the volatility discussion.

The Ebb and Flow developing TRADE METHOD, is based on volatility. I think it was ATTICUS lit the light bulb over my head, when he described the option contract as a package of volatility.

Anyway, the EBB and FLOW method is entering, buying LOW VOLATILITY and SELLING HIGH VOLATILITY, as described in PREMIUM BALLOONING. However the system is pretty much mechanical, or automatic in a sense. You still have to make the decision to enter, or exit, but basically works on different characteristics of the trade. I suppose the GREEK afficianados would have identifying situations with the GREEKS to those entries and exits? I'm using the OPTION CHAIN, to enter and the charts and a favorite indicator to exit. Do not either need to calculate, or figure out the volatility. It occurs naturally, like rain, or shine.
 
1) Sheesh! Hour into the Friday and the STOCK Condor, made money.

2) The QQQ index condor lost I think? Only targeted the price range, didn't figure the premiums for an actual condor paper trade.

3) The Expiration Friday, Long Straddle was making money, now losing money, see on it later in the day.
 
The Expiration Friday, weekly Long Straddle test. I tried it on the QQQ 62 strike and the 63 strike, as at the time the index was in the middle of the two strikes.

The 62 strike ended up zero, at breakeven figuring in commissions.
The 63 strike ended up losing ( -.22 cents) adding on the commissions.

Nothing reliable about that Expiration Friday trade at all!
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In my long Straddle ( ebb and flow ) outstanding PUTS, added another long PUT, bought at $1.59 OTM. This is the 60 August QQQ PUTS. Now holding 3 contracts and average Break even price is now. $2.02. Down from the original $2.93. All I need is a medium strong pullback, and will clear that Long Straddle and keep what profit I took already. These are the adjustment trades. Think I cleared a $117 profit on that one and now trying to keep it. If I get my breakeven in a move, will show a ROT of 19% on the trade, which cost in total $605.
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Well while I wait for those days to get enough movement in my EBB AND FLOW will try 3 CONDORS paper trading this week.

QQQ Buy 63 - .21
Sell 62 - .63
Sell 61 - .1.33
Buy 60 - 2.22

SCS Buy 15 - .15
Sell 7.5 - 1.30
Sell 17.5 - .15
Buy 10 - .05

ORCL Buy 26 - 1,15
Sell 27 - .35
Sell 28 - .05
Buy 29 - .02
 
Just the chart and the research that showed an earnings report was due in bout 10 days. So I figured it would stay fairly steady this week. Within condor parameters. At any rate, I'm just experimenting with some ideas. Paper trading.

I don't think my Ebb and Flow method is going to work in a Bull trend environment , with VIX below 20, in the teens. It likes range bound, sideways or bear markets with lots of swings. So, I'm trying to gain some paper trading experience with the butterfly and condor. So I will have an alternative method to fall back on.
 
Come on Falconview, why bother posting "paper trades?"

Like posting my "paper" guesses on the lottery.

I don't want you losing real money either, so just admit that this is not a strategy you feel comfortable enough to test with real money.

Not trying to be mean or even critical, just don't understand the point of this pointless exercise,

Don
 
Well Don I posted them because I'm bored. Several days of a tightening range bound market. It's my thread, so I feel free to do so. At least one person asked a question on the Condors, so it must be useful to at least one person. Novices express curiousity. Much of this is new to them, as it is to me. It is very hard to sit on your hands and do nothing. I figured if I did something wrong, you experts would jump all over me. Didn't happen, so it must be okay? Probably close them today if I get the chance.
 
Quote from falconview:

Well while I wait for those days to get enough movement in my EBB AND FLOW will try 3 CONDORS paper trading this week.

QQQ Buy 63 - .21
Sell 62 - .63
Sell 61 - .1.33
Buy 60 - 2.22

SCS Buy 15 - .15
Sell 7.5 - 1.30
Sell 17.5 - .15
Buy 10 - .05

ORCL Buy 26 - 1,15
Sell 27 - .35
Sell 28 - .05
Buy 29 - .02
More...

Wow, there is absolutely no logic in that ORCL condor. You're receiving a $0.03 credit on the 28/29 vertical before comms. A penny after commissions.
 
Quote from falconview:

Parliament. On the volatility discussion.

The Ebb and Flow developing TRADE METHOD, is based on volatility. I think it was ATTICUS lit the light bulb over my head, when he described the option contract as a package of volatility.

Anyway, the EBB and FLOW method is entering, buying LOW VOLATILITY and SELLING HIGH VOLATILITY, as described in PREMIUM BALLOONING. However the system is pretty much mechanical, or automatic in a sense. You still have to make the decision to enter, or exit, but basically works on different characteristics of the trade. I suppose the GREEK afficianados would have identifying situations with the GREEKS to those entries and exits? I'm using the OPTION CHAIN, to enter and the charts and a favorite indicator to exit. Do not either need to calculate, or figure out the volatility. It occurs naturally, like rain, or shine.
More...

I stated they're synonymous, equivalent. If one is known you can solve for the other. Quoting premium is quoting vol.

So you buy low and sell high but state that you don't need to calc volatility. How do you reconcile those two statements?
 
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