It's totally what we're discussing here. In fact Mav and I have made the point that the only sane play here is controlling gamma so you're on the right side of it and that is indeed one of benefits of straddles. However, the entire thread has NOT been about straddles but about OTM puts and calls that have huge gamma risk - so that straddle example doesn't even apply really. If all you do is sell ATM straddles then good for you but the vast majority do not and continue to stay on the "can't ever be wrong but when I'm wrong I'm wrong big" path.
I haven't been posting many updates but all trades are up to date on my trading log. The remaining problem children trades will be closed this week! I will be glad to have them off the table. Happy trading! Bobby
I failed to close a couple of ES trades when they reached a loss equal to 2x the credit received. This happened because I can't enter stop limit orders on ES. Those positions will close this week and I will just take the losses.
Ha Ha Ha Ha Ha! (Actually if you can reliably continue that performance you'll do very well! It's much too soon to know. Good luck to you.)
If you are following along on my trade log, I did something entirely new based on tastytrade's research. I bought a 1210 put calendar spread in RUT. This position will be managed hopefully at a 10% profit. I paid 13.90 for the calendar. Happy trading! Bobby
If you followed tt from the early days, you would have about 50 different strategies that they have "proven" to be winners. Their evolution of things is bothersome to me to say the least. I understand that traders progress-hopefully- over time, but they keep "discovering" things on a monthly basis. If they make money trading their strategies, it is only because of very deep pockets that can hold until they are "right". How that is probability based trading I don't know. Reminds me more of the monkey and dart board strategy.
I almost choked when I saw this line in the original post, about 3 mins ago...(I'm a first-time viewer of the thing.) "Thus far the account is up $2,034 on a $150,000 account. This should be interesting..." So on $150,000, after four months, you are up $2K in profit? Or am I reading that wrong?