So the time decay i've collected this week has been magnified due to the impending holiday? That Sucks If i'm selling wide and deep otm strangles would wouldn't I want the prices to stay where they are?
That's a good analogy, I always like to say its like taking the money line on florida when they are playing eastjabumbblefuck community college bet a lot to win a little and 5% of the time you can get crushed. I just make sure the delta is always pretty neutral between the calls and puts and if the underlying price gets to close to either end of the strikes I get out of that one and sell an opposite position. I've only been doing a few months so I have no idea what I'm doing yet but it seems pretty easy to pick a 20 - 30 point range the ES will stay in for few days or a week.
Yes, that hissing sound is the long weekend being priced in. And I meant the option prices staying flat not the price of the underlying. I really find it amazing that you are actually surprised by this! Are you really that naive? I mean, don't you think people would've thought about this already!? If it was this easy everybody would do this.
Sure it's easy when the market is a one way street with no huge selloffs. Go back to Feb-Mar or last year when the SP was moving anywhere from 30 to 100 points in a day and see whether you would be able to close out before blowing up!
very true that is what stinks about trading the beast is ever changing and once you get use to how things are acting they change.