Trading Long Straddles

paper money trading

CONDORS

QQQ

Took a look at the progress on the weekly condors. QQQ after commissions ZERO. Needs to run into tomorrow. So would let it run.

APOL

Showing a profit after commissions of .17 cents

_________________________________

Interestingly enough, if I had done just the debit spread alone part. The QQQ would win .57 cents on the QQQ. It would win after commissions on APOL with .46 cents, and both trades as verticals could easily run into Friday for better profits, because the market is favorable. So will check tomorrow morning, Friday expiration.

Lesson learned: Calculate the CONDOR for an entry, but only actually trade the Vertical Debit spread. Pays more and cheaper on commissions. Plus your losses are only what you spent originally if you go wrong. Controlled loss, and a good return. Think next week I will trade this in cash?
 
Thursday before the close.

Sold 1 CALL 64 QQQ Sept @ $3.37 = $80 -$10 comm = +$70


This is half of the 64 long straddle, September. leaving me with;
1 PUT 64, QQQ Sept. @$2.57

______________________________

Current positions OPEN. Remains of 1/2 straddles.

1) Holding 3 QQQ PUTS -60- @2.02 breakeven

2) Holding 1 QQQ PUT Sept. -62- @$3.22 breakeven

3) Holding 1 QQQ PUT Sept. -63- @$3.09 "

4) Holding 1 QQQ CALL Sept. - 64- @$2.57 "

- ** Looking for a 62 Long Straddle tomorrow Friday morning.
 
Straddles are a very simple option position, but you - falconview - have turned this thread into a confusing mess. This thread should be no more than 10 posts, not the 700+ posts it is.

:(
 
I think all strategies, are SIMPLE, if you stick to the academic book version. The people making money have learned some tricks to apply to standard strategies. I don't think the LONG STRADDLE is immune to this tricks business.

I am somewhat worried that I am now overexposed with 4 long 1/2 straddles, that need to be adjusted and got out of, at breakeven, or .25 cents less. ( Will still give me a profit on the trade ) I am thinking I will not buy anymore Long Straddles until I can start clearing up the leftover debris. Those 4 long losing 1/2 straddles. Plus I want to go on vacation. Clearing the decks would be helpful.

For diaoptions: My twist, or tricks I am trying here, is based on a 35 year old CLASSICAL OVERLAPPING STRADDLE STRATEGY. What I didn't like about it, was that you took a loss, when the trend turned. So I played around with it, and am trying to do it without a loss. I'm vulnerable to TIME DECAY and a market that goes dead, or goes into a LONG BULL TREND.
My uncertainties are reflected in that I don't have enough experimental trades, to establish some rules about adjusting the losing side to breakeven. So, being over exposed and a few other reasons ( I want to travel without a laptop ), I'm going to concentrate on seeing if I can prove out, the adjusting side of the method in real time, with real cash. The ancient OVERLAPPING long straddle, STRATEGY boasts 30% return a year. ( I'm not doing that one. ) Got my own variation, or trying to do so.
_________________________________

In the meantime have been looking for CONDOR stocks, for next week. I get a good one, might give it a try in CASH instead of paper trading. Still got some points to clear up on Condors, in my pea sized brain. Haven't got the understandings quite down yet, particularly involving tricks.
_________________________________

Since this is my thread, I kind of take liberties with explaining what I'm doing, for other NOVICES that read this stuff, like myself. It's nice to know you are not alone. The numbers of strategies in options are so many, it would be ( for me ) impossible to learn them all at a level of professionalism, that they would become instinctive.
I envy ATTICUS, he has it all down pat instinctively. Doesn't have to think about it in depth, just react. Plus he is making GOOD MONEY, which is always impressive, from someone who trades options. I am still chuckling over diaoptions moving cartoon. That was a really good one.
 
Okaaay! Going to quit for the week. Just got out of my two paper traded CONDORS in the QQQ and APOL. Both were winners, however you wanted to arrange them.

Far as I can tell, the trick is in finding a stock with options going to go sideways for a week. Get that trick down pat, and you have a money maker.

I've got a list of candidates. To check over and see. If not today, maybe on Monday.
 
Quote from falconview:

Okaaay! Going to quit for the week. Just got out of my two paper traded CONDORS in the QQQ and APOL. Both were winners, however you wanted to arrange them.

Far as I can tell, the trick is in finding a stock with options going to go sideways for a week. Get that trick down pat, and you have a money maker.

I've got a list of candidates. To check over and see. If not today, maybe on Monday.
More...

My best trades are directional. I see no utility in trading neutral delta from the outset. You may as well sell credit spreads if that is the objective.
 
Quote from falconview:

Interesting comments and opinion. It leaves so much to the imagination. WHAT DIRECTIONAL type trades are your best money makers?
More...

ATM long flies if you're bullish. OTM long calendars if you're bearish. If you're right on direction you'll make very good ROC. If you refuse or can't accept a position that flips delta then go with verticals.

Bullish XYZ. Spot at $46.

Buy 45/50/55 fly or,
Bull 45/50 vertical

Bearish XYZ.

Bear 40/45 vertical or,
Bear 45/50 diagonal calendar or,
Buy 42/42 calendar
Buy 45/50 back-spread

You want to be short vol + long delta on bull moves as index vol correlates downstream to single names, put simply. You want to be long vol + short delta on bear moves for the index correlation.

You want to go into long straddles; then long flies; then single calls... you're fixated on the tool and not the job. The spread/combo is simply a tool. 90% of winning is being accurate on price (underlying) or vol. The advantage to vanilla options is that they're forgiving.

Long straddles are not forgiving. You see this large premium and can't wait to get shaken out of one leg profitably, but then you're sitting on a prayer OTM shot at 20 delta or less. You take a non-directional gamma trade and morph it into a hail mary. Odds are against the 20D generating enough deltas, and wtf are you exchanging something generating a few -deltas into a hail mary call? It's a cautionary tale -- it's textbook of what NOT to do. STOP BUYING THE F*CKING STRADDLES.
 
TBH, you get a lot of good advice on your various threads. The positions I recommended on the other thread (5 total) made 30% ROC on average. You tried for days to execute one or more on paper and couldn't do it. I hope you see how people can get frustrated.
 
You must log in or register to reply here.
Back
Top