Posted in the Day Trading Forum
#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?
Add your comments below
|What is your favorite NinjaTrader indicator site? (Oct '09)||Nov 17||Jimmy||34|
|Analyst Update: J C Penney Company Inc, Plug Po...||Nov 13||Krypt Keeper||1|
|UGG boots Clearance Sale (Oct '09)||Oct 29||kurtcooksalot16||33|
|Most Active Options Update: eBay Inc||Sep '14||Philip Cohen||1|
|Analyst Downgrades: eBay Inc, GT Advanced Techn...||Sep '14||Philip Cohen||1|
|Trading Penny Stocks for a Living (Dec '10)||Aug '14||Jim D||14|
|FXCM cheated their clients outta MONEY (Apr '14)||Apr '14||DayTrader||1|
Find what you want!
Search Day Trading Forum Now
Copyright © 2014 Topix LLC