Vertical Spreads for Aggressive Growth

[cnms2]

In my opinion, legging in requires a more complex forecast, and it's more difficult to master. You have to quite accurately predict two opposite peaks (top/bottom or bottom/top), and your timing must be quite precise too.

In long run you make more, and less painfully, if you try to collect only the "meat" of the trend, where the price has its highest velocity. Instead of trying to increase your profit by squeezing more from each trend (the vertical approach), it's more efficient and less risky to take what's easier from it, than move on to another stock with its trend going on (the horizontal approach).

This secret was already out ...

Quote from rallymode:

i noticed too, you guys are now jinxed

 

[Cache Landing]

Quote from cnms2:

I was short AAPL but I closed it two days ago (now it seems I exited it prematurely; I thought I've seen a flaw in the downtrend). So far I don't see signs of an upwards reversal. I'm on the sidelines.

You were right. I was wrong.... You're smart. I'm stupid..... You're good looking. I'm not attractive.

 

[cnms2]

Another secret is to trade in the market / sector direction.

And ... some luck doesn't hurt.

Quote from Cache Landing:

You were right. I was wrong.... You're smart. I'm stupid..... You're good looking. I'm not attractive.

 

[Cache Landing]

Now I'm in a predicament. I'm expecting the 200SMA to hold. This tempts me to add to the position as it was small to begin with.

[note] I'm not a big fan of martingale strategies, but might consider this exception.

 

[Cache Landing]

Rally thinking to himself
I'm also smarter and better looking than Cache. He should have known to do it like me and open the whole AAPL debit IC at the same time. I'm already up on the position and he's chasing it.

 

[cnms2]

Unfortunately he's losing money too, and it's time to wonder if he should follow his initial trading plan (to adjust / close/ hold if AAPL's price moves beyond its safety targets, and / or if its IV goes up).

AAPL closed at 63.18

Quote from rallymode:

I also like AAPL here. I have a june 65/67.5/70/72.5 condor fot .20 debit.

Quote from Cache Landing:

Rally thinking to himself
I'm also smarter and better looking than Cache. He should have known to do it like me and open the whole AAPL debit IC at the same time. I'm already up on the position and he's chasing it.

 

[Cache Landing]

Quote from cnms2:

Unfortunately he's losing money too, and it's time to wonder if he should follow his initial trading plan (to adjust / close/ hold if AAPL's price moves beyond its safety targets, and / or if its IV goes up).

AAPL closed at 63.18

Oops... This whole time I was thinking that he was in a debit Iron Condor, in which case he would be making money right now.

 

[rallymode]

Quote from Cache Landing:

Rally thinking to himself
I'm also smarter and better looking than Cache. He should have known to do it like me and open the whole AAPL debit IC at the same time. I'm already up on the position and he's chasing it.

LMAO

I didnt open it all at once, who will give you a ATM $2.5 wide condor for .20?

i built it up from verticals.

 

[rallymode]

Quote from cnms2:

Unfortunately he's losing money too, and it's time to wonder if he should follow his initial trading plan (to adjust / close/ hold if AAPL's price moves beyond its safety targets, and / or if its IV goes up).

AAPL closed at 63.18

i aint losing, its quoted at .50/.75, you guys are confusing the position i got with a different one. there's no plan to adjust, just hold through expiration

 

[cnms2]

I guess we're talking about different positions. When you said you opened a condor for a credit, without mentioning legging into it, we assumed you're talking about an iron condor.

When you consider cash flow and margin, iron condor and any flies are variations of the same strategy: you want the price to stay put, and the IV to go down.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1076471>

Quote from rallymode:

i aint losing, its quoted at .50/.75, you guys are confusing the position i got with a different one. there's no plan to adjust, just hold through expiration