If volatility is declining you want to be a seller and if it is rising you want to be a buyer. Provided all of the other assumptions line up in...
Just make sure that you don't think that you can trade the IB every month. Try and wait until conditions are right: IV declining, flat skew,...
Bounce
Market makers don't throw a switch at the end of the day to pull the theta out of the position. They pull it out throughout the day and they will...
Sorry, didn't realize that you were talking about gold. I don't trade it but I think it actually has a skew in both directions. Stocks typically...
While I am on my soap box, I will add that I learned the hard way that the risk graph you see in thinkorswim or any other options platform is an...
You probably already know this but you should really understand the TOS platform before you start putting on trades, especially multi leg short...
If it is for a few days, you might be better off just buying the futures or an ITM option. Every time you add an option, you are paying the...
Just saying to be careful if you are buying an OTM debit spread and the short is only worth .10-.25 for example. You are capping your gains...
I have seen a lot of traders that are very successful just trading verticals. If you have a bias of where it is going then buy an option 1 strike...
I don't think that back month vertical will help you since you are closing it out that day. Even if you get close to the mid price you are still...
Actually a butterfly and iron butterfly are synthetically the same. The difference is that instead of using all calls for example in the iron...
I understand and feel the same way. I get nauseous looking at a T+0 line that drops off a cliff. That is why I buy additional otm longs...
If margin is an issue than you are putting too big a position on or you need a larger account.
Selling strangles with additional fotm puts works too. If price tanks those puts (at least 2 to 1 of what you shorted) really kick in and help...
Yes they are the same but they have very different results. Moving too fast in one direction might not be an issue with a credit spread, with...
Learn how to pick direction and trade verticals. Either credit spreads or debit spreads. Learn how to find stocks that are in a quiet period...
Straddle if you can make a profit based on your assumption Sell credit spreads outside of the range Butterfly if breakevens encompass the range...
Another big mistake is that iron condor traders don't pay attention to the IV skew which is pretty important when you are selling OTM especially...
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