Trading Long Straddles

Discussion in 'Options' started by falconview, Jun 13, 2011.

  1. If you could rule out 2 numbers in an european roulette wheel, or 3 numbers in an american one, and you could find a casino with no limits, you could own the world in less than a couple of days.

    If you could know where all the options and futures bets are placed (wait you can!), you could rule out a few prices where the market is unlikely to go. All could be changed by a new bigger bettor entering the action, but then you could remove your bets from the market, or reverse them. (The Savannah Move / The Reverse Savannah Solo.).

    Using EXCEL in a casino is against the law. Be forewarned!.

    :confused: :eek::D
     
    #171     Jun 23, 2011
    billb2112 likes this.
  2. I was in a casino a few years back, saw 13 red numbers in a row on the roulette wheel, I dropped a couple hundred, the best was the look from the bit boss, I said I know gamblers fallacy, sure enough red came up again, had a little sweat on my brow when I doubled down, got my black and got the hell out of there, pit boss told me he saw 27 in a row one time!!
     
    #172     Jun 23, 2011
  3. Say that by some algo you accurately can rule out 2 numbers, and place equal bets on all other 35 numbers (european wheel has 37 numbers). What is the SURE outcome per each roll of the ball?.

    Compounded?.
     
    #173     Jun 23, 2011
  4. your odds are still 1/35 no, or are you saying that you then become the house in which case you would have edge over the long term of roughly 5.26%, not sure how you would compound it.
     
    #174     Jun 23, 2011
  5. Start with 1000 one dollar chips, and physically do it (sim it in EXCEL). Life will simplify after that. I promise. Remember 2 numbers are ruled out (maybe more if you are skilled, but let's not go there), and you bet in the other 35 numbers an equal bet in each.:cool:

    How much do you make per roll?.

    It's so simple that people don't see it!.
     
    #175     Jun 23, 2011
  6. You got me curious about that one. Care to explain the outcome and how it works out?
     
    #176     Jun 23, 2011
  7. You make one winning bet that pays 35 to 1, and 34 losing 1:1 bets to hedge the negative variance. So f...ing simple that it hurts. You win net every roll.

    This is the last I post on the subject. Converting that to the futoptions game is a bit harder, but simpler!. So f...ing simple that IT REALLY HURTS!.:D But you don't get to place as many bets per hour...not even close.:(
     
    #177     Jun 23, 2011
  8. Learning Excel again, doesn´t really thrill me. Used to know it 20 years ago, but haven´t used it since. Isn´t there a FREE CALCULATOR for LONG STRADDLES on ThinkorSwim someplace?
     
    #178     Jun 23, 2011
  9. Of course I meant all 35 bets are made on the same roll of the ball. The more numbers you can rule out, the bigger your % edge. Much easier than predicting where it is going to land.
     
    #179     Jun 24, 2011
  10. Reading a bit on Long Straddles. Seems in a 1 month to 2 month straddle buying system. If you apply this money management rule, you boost your profits overall.

    1) Close STRADDLE after it loses 10% of the spread value.

    2) Let gaining Straddle run.
     
    #180     Jun 24, 2011