what type for strategy is best to use to profit on volatility?

[xflat2186]

180's?

 

[aryhaven]

haha ... i'm sorry for typing wrongly.

I'm talking about 580.

 

[Maverickz]

Quote from aryhaven:

i'm trying to get out of GOOG JUN 08 180 PUT.

Surely to god you mean 580 puts. If so you might try breaking it down into lots of 10 contracts to at least get some partial fills. If you are truly trying to trade 180 puts I am afraid you are going to be shit out of luck.

 

[Maverickz]

Quote from aryhaven:

haha ... i'm sorry for typing wrongly.

I'm talking about 580.

Ok now that we have the correct strike, are you using a limit order and if so what price is the limit set to? If you are using a market order it should fill.

 

[xflat2186]

Your 100 lot is not even showing up on the current market. Which exchange did you send it to? I assume you trade as customer. There is plenty of liquidity in at the money June in GOOG

 

[Maverickz]

Yeah thats why I was asking what his limit price was. If it was placed correctly it should have filled pretty fast.

 

[atticus]

Yeah, I'm having trouble selling these 10,000 GOOG 580P at the offer, any suggestions? Are these puts unlimited risk?

 

[xflat2186]

take a fill atti !!!

When did you cut back to 10k lots?

 

[newguy05]

Quote from xflat2186:

When you sell a straddle you’re expecting implied volatility to fall, that’s the primary variable to be concerned with, not theta.

Really? i always thought selling atm straddle is a play on theta if you believe the underlying wont move.

What is the best combo then to make a play on theta if you believe the underlying will not move much by expiration?

thanks

 

[atticus]

Think of volatility as synthetic time and time as synthetic vol. Sure, today's premium will be cheaper tomorrow, all things being equal. A bet on theta is a short bet on stat vol, or the ability to ride it out.