Trading Long Straddles

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

  1. Well very diverse opinions, even from participants in the same field.

    My slim understanding of Market Maker methods, is by reading contributions here and there on the forums. I have come to the conclusion that a Market Maker trades differently to a small retail trader and wonder if a Market Maker can actually transfer successfully and profitably from being a Market maker into a successful retail trader? I formed the opinion they find it very difficult?
     
    #51     Jun 15, 2011
  2. Well I found some of the stuff on here, with the one upmanship very funny. Back in my stock trading days, ( decades ago ) my favorite strategy was trading AGAINST market makers, in the thinly traded category. Loved to see them squirm, before they gave me my 20% finally. ( took about 3 months )

    My impression of Hedge Funds is; they go broke all the time? Every market crash at least.

    On the subject of Joe Ross, he has been peddaling his training lessons for forty years at least. I tried them decades ago. Even looked to see what he was doing about six months ago, when his name came up. For a guy who often can´t make 2% a year bottom line, I would hardly recommend him. From an amateurs viewpoint that is. I presume he does alright by selling advice. Since he is still at it.
     
    #52     Jun 15, 2011
  3. To IV trader

    Thankyou for the contribution on VIX switches. I did trade PAIRS using VIX and some other index. Can´t remember now. It worked okay, but was highly directional and I really didn´t see the sense in it, so I dropped it.

    I´m going to see what GOOGLe brings up on the subject.
     
    #53     Jun 15, 2011
  4. IV TRADER

    Got something on trading the VIX in options. Interesting stuff, but assimulating it will take a bit of thinking.

    Didn´t find anything on the VIX switch itself, other than it occurs on expiration day, the third Wednesday of the month, when one of the months is replaced by another. Didn´t find anything that said which way the VIX went when this replacment month happened though?
     
    #54     Jun 15, 2011
  5. Dunleggin

    Thankyou for your advice on trading the traditional way on LONG STRADDLES. When I get done with this experimental test of an old time method of trading Long Straddles, will keep your advice in mind.

    If as a retail trader at home, you are making $250,000 a year net profit before taxes, I am or would be very impressed with your advice.
     
    #55     Jun 15, 2011
  6. Falcon -I was just kidding...read a beginners book and stay away from ET advises for a while
     
    #56     Jun 15, 2011

  7. Dear Falconview,

    I have no idea what you're rabbiting on about. Do you have any idea either?

    regards etc.,
     
    #57     Jun 15, 2011
  8. Been a busy opening this morning. One of those GAP traps. The other day it was a CLASSIC GAP, wished I had traded it.

    This long straddle method got complicated on me. I´m starting to lose track of the numbers. Did good this morning though, with 23% overall on the PUTS. Still holding CALLS and adding to them.

    Have another sheet I took a flyer on PUTS yesterday and it did 16.5% return this morning in a directional trade.
    Still paper trading though in TOS.
     
    #58     Jun 15, 2011
  9. Dolemite

    Dolemite

    Since everyone seems to be a seller of premium on these down moves, why not buy an SPX straddle and finance the theta with otm VIX call credit spreads?
     
    #59     Jun 15, 2011
  10. Hallelujah!
     
    #60     Jun 15, 2011