<<A straddle is deceptively difficult to trade and entirely the wrong
trade for a sideways market that has been building for a move down but is currently on a fake earnings rally courtesy of GS.>>
If you sell a straddle in a sideways market, I wouldn't call it the wrong trade!!!
GS earnings or not, from Wednesday next week latest we go up to test the Highs or to new Highs!
gis
On Tue, Jul 14, 2009 at 10:19 AM, Adam Green <adam.cell.phone@gmail.com > wrote:
A straddle is deceptively difficult to trade and entirely the wrong
trade for a sideways market that has been building for a move down but
is currently on a fake earnings rally courtesy of GS.
Presumably it's an august contract. Of course the underlying will
have to move $10 to breakeven on a straddle, but it will be a bit less
give or take volatility and a lot more if the given stock or index
stays in range for a few weeks. Not a great place to be, but what you
can do is look at legging out of the straddle. You'll have to be a
quick study to play this trade.
Ironically, if I've got no other idea in my head, I'll _sell_ a
straddle and see what happens next -- knowing most circumstances
(price action and time) are working in my favor.
On Tue, Jul 14, 2009 at 5:59 AM, paul7313<paul7313@yahoo.com > wrote:
>
>
> I bought a straddle debit $10
> after some time I hope the market moves and I sell.
>
> the question do I enter the sell as a credit? how much?
>
>
--
Adam
--------------------- --------- ------
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups. comYahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/ group/OptionClub /
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/ group/OptionClub /join
(Yahoo! ID required)
<*> To change settings via email:
mailto:OptionClub-digest@yahoogroups. com
mailto:OptionClub-fullfeatured@yahoogroups .com
<*> To unsubscribe from this group, send an email to:
OptionClub-unsubscribe@yahoogroups. com
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/ info/terms/
__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
.
__,_._,___
No comments:
Post a Comment