OPTIONS--Directionally Motivated, Volatiltiy Savvy

Discussion in 'Options' started by dedicated1, Jul 30, 2005.

  1. I wanted to start this thread in the hopes that we might learn something. I have had great results thus far by adding options to my stock swing trading and wanted to discuss all aspects with likeminded individuals.

    What do you think of this current market climate? Backspread ? Frontspread??
  2. TGregg


    Moved thread to options.
  3. So this is what I have been doing. It's really not that complicated since I am relatively new to options but I am trying to profit from both direction and volatility. Buy low sell high on the options and pick direction on the stock. Well at least not get crushed on volatility for gained leverage. So mostly I have been buying "cheap" straddles and trading stock. Everything has been in the front month as not to complicate things for now.

    I am trying to gain a working knowledge of all the greeks and not just the definitions. Most recently I did sold before the quarterly report(a day early), which wasn't so nice, but it worked. I wonder how you all feel about the marks vs expiration or anticipated news event. Anyways, I sold the ATM intraday and hedged with stock near the close. The volatility move agianst me for a day sucked but it's my start to selling premium.

    What I am looking for is some constructive criticism so that I might not learn everything the hard way. All comments are much appreciated.