Trading Long Straddles

Atticus

Well okay on my bad use of the world exponential. I am just now after 3 weeks, getting my picture in my mind what the differences are between debit and credit spreads.

This week I had a Eureka moment and figured out how to handle the sold strike, etc. Got a clearer idea of the play involved.

I'm trying to build up a list of stocks, over $2 billion capitalization, with good WEEKLY option chains, that have enough premium to trade with OTM. That is going slower.

At least as far as debit and credit spreads, I am understanding the play now.

I can even glimmer or see the potential of a calendar, or even a diagonal. This stuff is all new concepts to me, but after I put it in a frame of mental reference, I'm getting the picture. I see now why Don Bright keeps saying all this stuff is simple. On the other hand, neither the butterfly or the condor seem simple, yet.
Was busy yesterday, my worker was short handed, and we are building a third floor addition, so lost most of my Monday unfortunately for trading stuff. Today Tuesday, I have to drive around buying building materials. GOOG seems to be working out as a trade, as I just checked at 4 a.m.
 
Closed two of my three leftover long straddle losing sides today. Both made a smidgen profit. One actually did quite good. Still holding a last one, a PUT that is a September. So it has time.

In review, it sort of looks like, doing LONG STRADDLES the way I was testing it would work, if I made the long straddles in 4 to 5 month out months. Then the losing side of the straddle was changed to a debit spread and just left for a month, to get hit. No hurry about it. When you use 2 month out long straddles, you just don't have enough time.
 
Quote from falconview:
Closed two of my ........ blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah ....... just don't have enough time.
More...

So when are you going to stop posting your useless crap? You must be looking for attention.
 
He Atticus!

I'm trying to understand that weekly GOOG debit spread this week. I've got something wrong here in my understanding? Can you explain it for me please?


I put on a DEBIT SPREAD in GOOG in TOS paper web based money on Monday.

Buy the 590
Sell the 595

On Monday for a $1.00.

Since I was collecting THETA I sort of understood, that my premium had to get smaller. Then buy back cheaper.

At any rate, the market ran away to the upside and I just closed it, for a profit. Think it went for $3.10. I thought it was losing money.

TURNS OUT I WAS WRONG, NOW I'M GOING TO HAVE TO CHANGE MY NOTES and assumptions. Would appreciate your technical explanation of where my misunderstanding was with this debit spread. According to my TOS account balance. Yeesh! I'm going to have to tear up my notes and make new ones in reverse.
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diaoptions

Don't want to get into arguments with you. This is MY THREAD and it is for NOVICES like me, with technical assistance supplied by professional voluntary experts, acting as MENTORS.

There are dozens of threads on Elite Trader, it seems you would be happier if you found a thread you were interested in, more professional and suitable, where you are in trading knowledge and lore at your level of skills.
I have no patience with bullies, destroyers and such. People who get joy in tearing down things, or other people. I like builders, people who create and like to leave the world a better place for people.
I have no idea why you are even reading my thread. It certainly does not seem to be to help novices understand the classic option trading strategies? Why are you bothering me? In my seeking self education? Whatever your problem, why don't you go start your own thread for your own purposes? I haven't got the inclination, or desire to swap insults with you.
 
Quote from falconview the dipshit:
I'm trying to understand that weekly GOOG debit spread this week. I've got something wrong here in my understanding? Can you explain it for me please?

I put on a DEBIT SPREAD in GOOG in TOS paper web based money on Monday.

Buy the 590
Sell the 595

On Monday for a $1.00.

Since I was collecting THETA I sort of understood, that my premium had to get smaller. Then buy back cheaper.
More...

Dipshit ..... You are not collecting theta with a debt spread. :D
 
Dia options.

Well that was a useful contribution. THANKYOU.! Gives me something to think about.

I call that useful techno stuff.

( grin ) Think you will miss me? I'm off on vacation this weekend, for an uncertain length of time. Traveling to the high sierras of colorful mountains and volcanoes, of the State of Chichicastenango in Guatemala. First goal is FUENTES GEORGINA'S HOT SPRINGS for a couple of nights. Located in a gorge on Volcano Zunil. ( it's on the web ) Lovely pine forests, indian villages at an altitude of 10,000 feet thereabouts. The loveliest lake in the world, Lake Atitlan. Georgeous mountain and volcano scenery.

Will take up trading again when I get back. Chou buddy!
 
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