Eduamon Don´t know calculas. I like the graph of he Put_backspread-increasing volume though. Volatility and volume often going together. Where did you get that?
I just looked up that PNL graph examples. What got me very interested is how X was at the intersection of the curving lines and the straight line graph. How you figure that I don´t know? I think I just got put back a grade from Options 102 trainee to Options 101 novice.
There is no volume referenced in that chart. I think you are headed to remedial reading summer 101... It is all VERY SIMPLE. It is in fact so SIMPLE that it hurts. Really.
I like simple, but feel chagrined ( see I wrote that without a dictionary ) that I do not know enough.
i was looking up the put backspread on the internet, and the graph example said it was a put_backspread_volume increasing example. You may not have had it on your example graph. I´m currently running three trade methodologies. Straight buying but continuously in the market. When you close your reverse. What I think your Eudamons put backspread system is. At the moment I have been experimenting with targets in SPY to take a profit and add another straddle. So far in 3 trades I have earned +$58, +$38, +$38. Using index targets to close the winning trade and put on another spread. The first one, I had a profit on both sides, so closed both. The second one, only was winning on calls and the third one was winning on calls only. So I am holding two sets of PUTS. Using 2 contracts in SPY. I am not at all sure this is the right way to go about it? I have sort of a mix of the mechanical method and your method. I am also trying out a new method of trading the trend. I cashed it in early in the morning for $18 net. But am keeping track of it, as if I was CONSTANTLY IN THE MARKET with a new indicator. That new method is up $134 so far.
volatility, not volume... remedial reading summer 101 it is... http://en.wikipedia.org/wiki/File:Put_backspread_increasing_volatility.png
Seems to be much the same, volatility picture and the volume picture? I wonder how you get this graph in real time for something you are trading? Does it come up on an option calculator? I was looking for position X.
With my new hourly indicator reversal, I almost thought I had a signal for a reversal, but apparently not yet. For the being constantly in the market with either Calls or Puts.
For the long straddle, volatility trade, almost reached BREAKEVEN counting in the commissions. Maybe the volatility will pick up whenever it starts a bear drop?