Trading Long Straddles

The sun is setting and I'm back at my computer. Monday evening.

Didn't have time this morning, but did want to discuss the condor Apol
with ATTICUS.
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APOL CONDOR CALLS

buy 35 @ .13
sell 34 @ .24 gives a credit of + .11 cents

I believe this top thread is a credit spread in the Condor and apparently if I use the recommended .15 credit rule, should not make it?

The bottom part of the condor was:
sell 33 @ .59
buy 32 for 1.35 So I end up with a debit of -.76 cents


I thought about this a bit this morning, but lacked the time to mess with it in detail, needed for this novice. Had to travel. The proper way to do this trade would have been just a lower debit spread and forget the upper credit spread part of the Condor? I think I'm right, and since this is paper trading practice will just chop off the upper credit spread of this APOL Condor and see how it works out. Be nice to get it confirmed though. See if my learning is taking hold? I would call this a condor NUANCE, OR TRICK maybe.
 
Quote from falconview:
My GOAL is to have WINS but no LOSSES.
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Hysterically%20Laughing.gif
 
Quote from falconview:

The sun is setting and I'm back at my computer. Monday evening.

Didn't have time this morning, but did want to discuss the condor Apol
with ATTICUS.
____________________________________

APOL CONDOR CALLS

buy 35 @ .13
sell 34 @ .24 gives a credit of + .11 cents

I believe this top thread is a credit spread in the Condor and apparently if I use the recommended .15 credit rule, should not make it?

The bottom part of the condor was:
sell 33 @ .59
buy 32 for 1.35 So I end up with a debit of -.76 cents


I thought about this a bit this morning, but lacked the time to mess with it in detail, needed for this novice. Had to travel. The proper way to do this trade would have been just a lower debit spread and forget the upper credit spread part of the Condor? I think I'm right, and since this is paper trading practice will just chop off the upper credit spread of this APOL Condor and see how it works out. Be nice to get it confirmed though. See if my learning is taking hold? I would call this a condor NUANCE, OR TRICK maybe.
More...

There is no 15 cent rule. I certainly would never buy a condor over the vertical if there is a nickel or dime difference between the two.

The APOL is ok. I personally wouldn't buy it. The vertical is 76 cents and the condor is 65 cents. You need APOL to stay under $34 with the condor, while any price above $33 is at max payout on the vertical.

I typically would avoid the condors unless the debit is at least 25% under the debit of the vertical. Strike width is THE variable, and then initial delta. Expiration payoff is literally grammar school maths. I am not being derogatory, but we're ok as long as we stick to expiration PNL.

Why APOL? Is this the weekly? I would look for something will a bit less speed. Maybe stick to Jul20 options.
 
diaoptions - cute! I thought I would have got more feedback, good or bad, mostly expected bad, but your reply was perfect.

Here is one for you this Tuesday morning early. Whats the difference between a NOVICE, amateur, or professional option trader?


I was thinking a novice is somebody like me, stupid, knows a little bit, but not enough to really count. As reflected in the account balance. ( - 27% )

An amateur would be somebody who knows a lot about options intellectually, but whose account cannot stay profitable through a year of trading options.

A professional option trader would gross at least $150,000 a year profit.
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Aiiyyy! Yiiii! ATTICUS my friend has a habit of throwing curve balls at me. Straining the grey matter. I was feeling really great now realizing that a condor was a credit spread and a debit spread. Then I looked at the credit spread and thought what the heck, I need .20 cents commissions in TOS to do that. So I would need .40 cents credit just to put that half of the condor. It delighted me no end, to figure out that this is the FIRST time ever, I saw a debit spread make money. I always thought of a debit spread, as the index passing through it, and had never actually made any money with one after commissions. But this is a new way of doing a debit spread collecting time decay on a weekly. GREAT IDEA and have some research now to do, for a method of finding the market conditions to use one. I have an idea, but going to have to trial and error it.

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ATTICUS contributions are most often profound. I find myself floundering around trying to understand his point. The most recent, for which I thank him, I'm still scratching my head. NEEDS THE DEBIT AT LEAST 25% UNDER THE NET DEBIT OF THE VERTICAL.
I take it that means the total debit of both spreads in the CONDOR vs the debit of the Vertical alone.
 
Quote from falconview:

diaoptions - cute! I thought I would have got more feedback, good or bad, mostly expected bad, but your reply was perfect.

Here is one for you this Tuesday morning early. Whats the difference between a NOVICE, amateur, or professional option trader?


I was thinking a novice is somebody like me, stupid, knows a little bit, but not enough to really count. As reflected in the account balance. ( - 27% )

An amateur would be somebody who knows a lot about options intellectually, but whose account cannot stay profitable through a year of trading options.

A professional option trader would gross at least $150,000 a year profit.
____________________________

Aiiyyy! Yiiii! ATTICUS my friend has a habit of throwing curve balls at me. Straining the grey matter. I was feeling really great now realizing that a condor was a credit spread and a debit spread. Then I looked at the credit spread and thought what the heck, I need .20 cents commissions in TOS to do that. So I would need .40 cents credit just to put that half of the condor. It delighted me no end, to figure out that this is the FIRST time ever, I saw a debit spread make money. I always thought of a debit spread, as the index passing through it, and had never actually made any money with one after commissions. But this is a new way of doing a debit spread collecting time decay on a weekly. GREAT IDEA and have some research now to do, for a method of finding the market conditions to use one. I have an idea, but going to have to trial and error it.

___________________________________

ATTICUS contributions are most often profound. I find myself floundering around trying to understand his point. The most recent, for which I thank him, I'm still scratching my head. NEEDS THE DEBIT AT LEAST 25% UNDER THE NET DEBIT OF THE VERTICAL.
I take it that means the total debit of both spreads in the CONDOR vs the debit of the Vertical alone.
More...


I consider myself a Novice.... did not look at Options until March of this year... Stocks from Covered Calls and assigned Naked Puts have lost 5% of my account... Leaving this approach behind.
Now... the option premiums on these equities have given me back about 2%.
Premiums on Credit Spreads have brought in another 5%... so at end of the day I have made almost 2% in my 3 month Option career.

Will continue to focus on Credit Spreads...
 
Webicknell NOVICE ROLLCALL

Okay on the credit spreads. When they work they work well. EXITING when they work bad is the problem.
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I added 1- 63 Sept CALL at $3.09

Sort of to hedge against my old straddle holdovers, 3 contracts at 60 QQQ at $2.13 B/E. I'm looking to add some very cheap OTM 60 PUTS to that half straddle I'm holding, but around QQQ 65 strike. This market seems poised to go up. I was looking at a bunch of major players and they are all showing UP tendencies.

My LONG STRADDLE, needs another .80 cents or so, before I cash in the winning side. Want about $4.47 as a price target for the 62 QQQ straddle.
 
SOLD 1 August 62 Call from Long Straddle, for .80 cents, leaving + $70 net profit, after subtracting .10 cents for round turn commission.
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1) NOW HOLDING 3 QQQ 60 PUTS from an earlier Long Straddle at a Breakeven at $2.02. Including 2 PUTS used as adjustments.

2) HOLDING 1 QQQ PUT September -62- at $3.22 Breakeven. Remains of Sept. -62- 1/2 Long straddle

3) HOLDING 1 QQQ 63 Sept. CALL @ $3.09/
 
Quote from falconview:

SOLD 1 August 62 Call from Long Straddle, for .80 cents, leaving + $70 net profit, after subtracting .10 cents for round turn commission.
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1) NOW HOLDING 3 QQQ 60 PUTS from an earlier Long Straddle at a Breakeven at $2.02. Including 2 PUTS used as adjustments.

2) HOLDING 1 QQQ PUT September -62- at $3.22 Breakeven. Remains of Sept. -62- 1/2 Long straddle

3) HOLDING 1 QQQ 63 Sept. CALL @ $3.09/
More...

This is nearly impossible to track. What is the accounting on the remainder of the 62 combo? The 60P comment makes even less sense. The only thing that is discernable is that you're long a SEP call from 3.09.

Absolutely ZERO offense intended, but my guess is that you're dyslexic.
 
Hahhh! Hahhhh! Gotcha. Will have to look that word up.:D :D

Added a long straddle

1 64 Long Straddle, at $5.14, or $2.57 each for put, or call.
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I have a feeling we are approaching the top of the monthly bar. Around strike 65, or 66 in the QQQ?
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Yup! It is a bit difficult trying to keep up with the adjustments on the previous losing side of the Long Straddle. There are moments I myself doubt it will come out okay. :D However, it's my idea and will see it through. Could take 5 to 6 weeks? I've been working on tweaking the adjustments, by cash prices of premiums, rather than index numbers. Running various scenarios. This taking a long time, to work out, is a bit aggravating, but HEY if it finally works and makes me steady money. Could live with that. :cool:
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1) NOW HOLDING 3 QQQ 60 PUTS from an earlier Long Straddle at a Breakeven at $2.02. Including 2 PUTS used as adjustments. I plan to add more, if given the opportunity by market movement.

2) HOLDING 1 QQQ PUT September -62- at $3.22 Breakeven. Remains of Sept. -62- 1/2 Long straddle

3) HOLDING 1 QQQ 63 Sept. CALL @ $3.09/

4) HOLDING 1 QQQ 64 Sept. long straddle, put and call @ $5.14/ 2.57/2.57

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In 1 and 2, I'm overexposed to PUTS. I figure the monthly bar will peak and reverse before the end of this month.
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I sort of expect the QQQ monthly bar will hit the high between strike 65 and strike 66. Whatever it does, will not matter really. I just go with the flow. EBB AND FLOW TRADING.
 
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