Riskarb reminds us to put things in perspective.. all the difficulty in life is a small price of admission for a front row seat to these miracles...many thanks
Well closed the books on my straddles: OIH $150 Straddle @ $11.00 Closed @ $9.55 Profit (net commish) = $852.08 ACL $130 Straddle @ $10.15 Closed @ $8.75 Profit (net comm.) = $658.03 GOOG $400 Straddle @ $53.60 Closed before earnings @ $54.10 Loss (net comm.) = ($302.63). Total Net Profits on Straddles = $1,207.48 Of course I decided to get out of the GOOG straddle and into a bullish position before earnings and got a good rim job from it. Lesson learned lol. That was my @#$% up and I take full responsibility but hey.....movin' on. So for the straddles themsleves a nice small profit wiped out by a dumbass earnings play LOL. I think I am going to continue doing this in small contracts a few at a time.
Sorry, I want to keep this active... Holding the OIH and ACL here -- OIH will definitely see conversion tomorrow due to gain from deltas and I may straddle it again. New tickers will be forthcoming -- feel free to post yours as well, A.
I get my daily scan from Chartbender.com so I will be looking for new straddles for the week. Risk: I was talking with Mav and looking into also buying the strangles on low IV candidates and then selling the straddles as IV expands. THis would be longer term than the short straddle sale first. Sort of play IV both ways legging into FLYs.
Yeah, not a bad idea to replicate vols in such a way, but you'll be long vega and short gamma based if trading equal positions. I can't tell you exposures as I don't know your idea of "longer term" -- just an idea, but I would err to trading similar term-structures.