I am not an expert by any means. But according to your report u were short the straddle. According to the graph u were short quite a bit! I hope this was on paper! :eek:
I thought this was a long straddle. I had a quick look and I think it's close to break even, I don't no his fill prices but a break even on a long QQQQ straddle after one day is VERY good.
You are right Forex-Forex the trade is showing a tiny profit right now. That Risk profile on the report was way off!
FOREX------> "Offset the long-call"........sell the long-call position on the rally before the news. "Offset the long-put later".......sell the long-put position on the decline/reversal after the news comes out.
BBBWWWHHAHHHA... no.. it wasnt a paper trade.. again I learn by doing... someone hit it on the head (forex?)... I would of been ok if i got a good fill.. I DIDNT.. actually i got screwed using scwhabs advanced option order entry... as for the volatility... the IV was lower than both the 20 period and 50 period HV so no i didnt pay too much for the option based on IV it was an experience: i cut loose the put for a MINIMAL profit. im currently holding the call hoping for a turn up in a couple of days... if the buy was more evenly matched i might of been ok.. what i learned: leg in at my own descretion. there was no reason for an order to exicute at greater than market!!!!! (call side) i was able to see what volatility does to a delta neutral position.
this was a long straddle.. an attempt to play the volatility. the volatility was there though notas much as i expected..
You were long vol and some skew, short deltas. Vols were flat in light of a 2% move in the index. Consider it a success as a close at neutrality would've killed your straddle. Magnitude saved the position, not vegas. Best-case was a runaway bull reaction as gains from skew would've offset losses on strip volatility -- essentially isolated to upside deltas. IOW, your position had to stomach a delta-inversion before it started to run on deltas.
for the love of PLEASE explain!! im not completely stupid but am confused "long some skew" "Vols were flat in light of a 2% move in the index." think i understand this one..but shouldnt volatility increase on a price decline? "Magnitude saved the position, not vegas." so its the fact that the underlying moved so much not the fact that it was an IV play? is that correct? If so what moves the vegas in a delta nutral position? iwould of thought the fed would "Best-case was a runaway bull reaction as gains from skew would've offset losses on strip volatility -- essentially isolated to upside deltas. " SO, a upside move of the q's would have been much more benifical? Skew meaning volatility (iv)? so the call was in a better position to gain vs the put? what is "strip volatility"? "essentially isolated to upside deltas." so does this mean i was effectively long w/ a hedge?