[TheOptionClub.com] Trading Bull Flags

 

I have been trading diagonal spreads on bull flags, and would like to know if anyone else out there is doing the same thing. My long is deep ITM - a few months out - say March or beyond. My short is near month or one month out OTM, higher strikes matching my bullishness. My objective is to get called or to close for a profit. And example is LVS right now. Because I am really a tyro when it comes to managing with position greeks, I'd welcome any words of wisdom. These trades tend to be Vega positive, and I'm looking at the implied volatility for the underlying on ToS charts, which is a blend, as I understand it, of the options. So right now it is at 92, and was recently as low as 80, and the flag has four daily bars. Historically LVS flags in the current trend have been 6-7 bars or so.

So I have decided to sit tight and wait for the IV to get below 85 before doing anything.

Any commnts from wise traders out there?

Bill F

__._,_.___

Messages in this topic (1) Reply (via web post) | Start a new topic

Messages | Files | Photos | Links

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

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

Recent Activity

•  21
  New Members
•  3
  New Files

Visit Your Group

Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___