Another Soft Landing

I was very surprised to see the market absorb the blow-up in IBM this morning. I figured the market would be down 50-60 points by now. I would prefer that in comparison to days like this where you go up a little, down, a little and overall take no direction on the day. Emotions flare, accounts churn, and blog posts suck (content wise, of course).

As always, don't expect anything out of the market during earnings season. Each days movement is always news driven. Make sure you are adaptable to the market instead of trying to predict which way the market will move. Truth is we don't know the biggest upset, disappointment, or surprise on wall street. If you are not trading small, conservatively, or defensively, I would suggest you consider doing so.

Has anyone traded any explosive straddles/strangles yet? If not, but you are thinking about doing so, get in early!!!!! Please. Get the options when they are cheap. You'll have a higher probability going into the trade.

If you could, someone throw me an idea of a topic to discuss.

Recommendation: Fight the urge to jump ship.

I think it would be interesting if we could discuss straddles/strangles during the earning months. I have noticed that options are expensive if you get close to the date, however if you purchase with a couple of months before earnings you are exposed to Theta in two options. Any thoughts would be appreciated.

Jeff, how about use MSTR, your favorite, to shred us some light on how you would construction a straddles/strangles. Haven't had much success trading straddles/strangles, any insights would be much appreciated.

yo Jeff, is so boring today. We made a nice 104% on CSH the past two days, but jumped out a little bit early. So i think the post about avoiding jumping ship sounds great. Emphasize watching the stock rather then your account balance, because that gets me everytime.

Have a great day in Utah. It snowed in Malibu two days ago, did you hear?

Find something good. : )

I like strangles but they are not really doing so amazing rate of returns (ROR)

LRCX yesterday:
JAN 55 call/50 put cots $ 1.55
next day reported at 7.20 am price to sell is $2.65
Net profit $ 1.1 that is 70.9 % ROR
bid and ask = 2.65-2.85

JAN 85 call/80 put
cost= $2.35
next day reported to sell at $3.25 (38% ROR)Net profit $0.9
if you've waited for today sell at price is $3.9 (66%ROR). Net profit = $1.55

I miss the ROR= to 500%!!!

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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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