Lake Jackson, TX

#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?

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Day Trading Discussions

Title Updated Last By Comments
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

Day Trading People Search

Addresses and phone numbers for FREE