Aaaaah! I dont have any list of earnings reports that effect the market. Been trying to collect them, but having trouble finding them on the internet. Would you know the biggies? I´m in another CASH TRADE beside the one I´m holding. Just put it on. 2 QQQ Sept Straddle 57 at $4.01 spread. In paper trading I´m holding 2 PUTS 57 at $2.00 The Friday trade just put on with paper trading, 57 Spread in the Weeklies at $1.55. Holding 2 contracts on paper. QQQ
Lotto Play Buy GOOG Jul 2011 600.00 call @ $0.35 http://finance.yahoo.com/q?s=GOOG110716C00600000 GOOG target after earnings $610.00 Payoff $1000.00 - $35.00 = $965.00
fwiw. Spread is not straddle. In my time when someone said "spread" and nothing else, referred to the vertical spreads that HoCo was doing, either credit spreads or debit spreads. Just names I know, but since you are learning, might as well get it straight. Straddles and strangles are also usually referred as buying or selling volatility. Carry on.
you are right, but can our heroic OP show us tomorrow's vol collapse in the front month, does he get vega?
I suspect our heroic OP is not a wet behind the ears newbee...and maybe he is playing games with all of us. I like it!.
explain to me how paper money has any value?? When you are in real time you will have no way of knowing if you will keep the discipline or plan OR whether you will decide to leg out of one side... at exactly the wrong time. You'd be better with a one (1) lot trading rather than paper trading. You are wasting your time, trust me... and any results that you think are empirical or suggest a paradigm on when and how to trade same, will have little to no correlation in the real market. Comments by anyone who actually found paper trading led to similar success in live, real-time markets?!
Whats an OP? Where you referring to me? Iceman1 I´m beginning to agree with you on the differences between paper trading and real money trading. Actually I do agree with you. However, with reservations, because the paper trading allows one to familiarize with the trading platform in a new type of trade strategy. Plus I feel I get a learning experience at no cost, from the nuances involved. Agreed though, it does not translate to the real time experience. Which is why I¨ve moved rather fast from paper trading into real cash this week. With two real money trades open. Kinggyppo Last night I was reviewing the VEGA numbers and my recording, and I have come to the conclusion VEGA doesn´t have anything useful to add, to trading the long straddle. The GREEKS may have use in sophisticated hedging trades. But can´t see Vega adding anything to the Long STRADDLE. It seems to me that the number simply moves with the STRIKE. So, if you are watching the index move by bar action with the strike, what if anything new is the VEGA going to tell you? It´s the same thing, as is basically Delta moves. THETA now in short same month option trading certainly has an effect. However I´m trading 2nd and 3 rd month out. Which gives me time, but requires more of an underlying move to profit. I see FOREX FOREX is expecting the market to GAP up this Friday morning. Whoops! That would make mincemeat of my Long Straddles if it does that. Since IV would collapse the premiums maybe. Hopefully at third month out options, I have time to recoup, with a couple of weeks leeway, should it happen. I´m trading mechanically, with some time to spare, so hopefully in my two REAL MONEY trades it will all work out. Thats the theory anyway. I guess I will find out the hard way. I post a lot because I´m a slow learner. Plus I´m old and forgetful. As Eudamon says and another of my friends, I over analyze. I must say Forex Forex has me worried this morning with his forecast of an UP GAP. I wanted one more STRIKE DOWN and the Point and Figure Charts, one strike box shows that is possible. You cannot forecast the market though.
OP = Original Poster. Vega is the most important variable in a straddle. More than price. IMHO. carry on.
Good morning to you to, Eudamon this exciting Expiration Friday. I have four trades on. Two in paper trading, one is a straddle the other a directional trade in Puts, and two straddles in REAL MONEY. 7:15 a.m. here, the market opens in 15 mins. Lot of fog this morning. Can´t even see the house across the street. Means a hot day I guess.