would like feedback on this trade idea please

Anybody see any risks I'm missing? Thanks much for any feedback.

https://buildingamoneymachine.blogspot.com/2020/01/a-new-trade-dynamic-covered-strangle.html

 

What happens when you buy or sell the futures only for the market to reverse?

 

https://www.elitetrader.com/et/threads/short-strangle-hedged-

 

First question to ask is are you a vol trader or direction trader?

Proactive vs. reactive. Market makes a 6 sigma gap up? Remember Nick Leeson?

 

The main problem is just using daily data understates the number of whipsaws. Still might be worth it though

 

Once isn't a problem; I will always set a tight stop to catch the first reverse. And after that I will reestablish the original buy/sell order and stop ...

 

Vol trader ... neutral focus ... I'll take a look at the Leeson timeframe. Thanks.

 

Yes, I understand that and am prepared for the extras (I think!)

 

Delta and gamma can hurt you bad if there is a quick underlying move to test one of the legs.