Feedback plz!

United States

#1 May 16, 2012
I would like feedback on something I started. I started buying straddles on spy when it was about in the middle of the trading range for the day. I would put in a very small profit target on the call side, enough to get about a 2% gain on the value of the straddle(only about 10 cents, believe it or not). I set this up to do a one triggers the other, where the calls get sold off, and then I sell the puts for what I paid. It's been working 4 days in a row, and it's not very stressful because the puts gain in value when there's a sudden swing down and it keeps the position from losing more than a couple hundred, then it begins to gain as the stock drops more. So it's like a built in safety net. I never hold the position, and I am prepared to eat the 200 dollar loss or so if it froze for the day and didn't move. I looked for anything about this, and I couldn't find anything. I guess I'm scalping, but if the stock dropped like a rock, i would be fine. Any ideas please? This works, but it shouldn't according to what so many people on the net seem to say. Am I missing something big?

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