four
5,087 posts
msg #112399
- Ignore four |
3/23/2013 11:21:01 PM
http://www.dailygainsletter.com/investment-strategy/use-this-limited-risk-strategy-and-stop-losing-money-guessing-where-the-markets-headed/483/
|
gmg733
788 posts
msg #112406
- Ignore gmg733 |
3/24/2013 8:10:30 PM
Two thoughts.
1. Straddle strangle needs significant movement to make money. You will essentially minimize your direction delta. So you need gamma on your side. Secondly, theta is highest for at the money options.
2. The market will pump up the volatility prior to the event. So if you are holding through the event, vol crush will, well, crush you.
|
leonsf
18 posts
msg #112412
- Ignore leonsf |
3/24/2013 10:27:45 PM
If you use this strategy, you better make sure the stock moves and moves a lot in either direction, if the stock does not move, you lose!
|
wkloss
231 posts
msg #112414
- Ignore wkloss |
3/25/2013 12:05:07 AM
And it would be wise to attend options training. There aren't many self taught options traders.
|
four
5,087 posts
msg #112526
- Ignore four |
3/30/2013 1:04:28 PM
thank you (all)
|