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ForexForex
Registered: Jun 2009
Posts: 888 |
06-13-11 09:06 PM
Quote from falconview:
Having failed at credit spread trading, Gap trading and straight buying of options. I“m now trying LONG STRADDLES in options. Got one week in it now, but probably run through the month. Any body got any advice on making money with lONG STRADDLES?
Take a look at GLD: http://finance.yahoo.com/q?s=GLD
- Weekly options offered.
- Consider entering 1 day before expiry, buy Thursday sell Friday.
- Debt will only be about $0.80.
- You don't pay for any time premium.
- I believe a small movement of 1.5% or more will do the trick.
- The trade is over quickly, no spending a few days watching it.
- Try a paper trade this Thursday to see how it works out.
GOOG and QQQ could be considered also.
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AAAintheBeltway
Registered: Oct 2001
Posts: 14532 |
06-13-11 09:31 PM
Quote from rmorse:
Not that I've ever met.....
LOL, no kidding. If someone doesn't know what they're doing, at least use a strategy that will lose your money slowly. Oops, I think I just gave away the secret that gurus charge $3500 per weekend to learn.
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DerivativesG
Registered: Mar 2007
Posts: 58 |
06-13-11 11:40 PM
Quote from falconview:
About 25 years ago, I made note of a strategy, trading Long Option Straddles. Since I am currently out of idea, I was re reading my notes. Somebody back long ago had what they said was a long option straddle method that worked.
So I am trying it in paper money. 25 years ago they did not have the internet resources, charting and paper money trading they have today. Just got one week at it, too soon to tell anything, but will see by the end of the month. In the meantime, I have heard sporadically of people making, or losing oodles of money trading long option straddles. So just wondered if there was any body out there successful at it?
That somebody "back long ago" was probably me. It was not so long ago it was in 2008. One month is the wrong timeframe to go into a straddle unless you are telling us that your straddle position is one that involves a stock which has an earnings announcement this month. Always remember straddles are speculative trades and not income. So getting a straddle right is like being a sniper. You have to aim good and then shoot.
I am successful at it but it took months of trial and error.
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DerivativesG
Registered: Mar 2007
Posts: 58 |
06-13-11 11:48 PM
Quote from falconview:
Having failed at credit spread trading, Gap trading and straight buying of options. Iļæ½m now trying LONG STRADDLES in options. Got one week in it now, but probably run through the month. Any body got any advice on making money with lONG STRADDLES?
Do you know why you failed at credit spread trading, gap trading and etc?
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traderlux
Registered: Aug 2009
Posts: 620 |
06-13-11 11:55 PM
i will second the f2 trade tatic as he laid it out for you to play it out. augen has also offered up ideas on these expiry day trades.
you could make it delta neutral,
or you could skew it if you have a directional bias.
you could also enter fri morning.
you could also look at omp to get an idea of how you think your u will move on exp fri.
spy, iwm, aapl, nflx, and amzn are also good ones to watch.
Quote from ForexForex:
Take a look at GLD: http://finance.yahoo.com/q?s=GLD
- Weekly options offered.
- Consider entering 1 day before expiry, buy Thursday sell Friday.
- Debt will only be about $0.80.
- You don't pay for any time premium.
- I believe a small movement of 1.5% or more will do the trick.
- The trade is over quickly, no spending a few days watching it.
- Try a paper trade this Thursday to see how it works out.
GOOG and QQQ could be considered also.
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