Registered: Apr 2012
04-28-12 02:52 PM
Quote from Riffraffpatrol:
If you're system has you with firm conviction in a particular direction, there is no reason whatsoever to do a straddle. If volatility is low-- buy calls. When IV is high-- sell puts. Based on a 2-3 day timeframe and want some wiggle room-- look to a new weekly series (every Thurs)... If u feel strongly thr move is imminent at present-- do the front weekly. I
Prefer deep ITM-- but if your willing to take the risk and u get your move-- the returns can be phenomenal on ATM/OTM.
Thanks, agree with straddle, that doesnt make any sense.
so yes it would be imminent
so when you refer to weekly, what does this mean ? never heard this term in option ?
I prefer a little risk, so I think I would buy ATM sell OTM verticle for example.... if bullish, but not sure how weekly terminology plays into this ? I would just look at opion chain related to the commodity 9 I would be looking at gold or oil in many cases, not equities)