Thanks to you all for the response.
I'm guessing there may be open orders from the previous day, for example GTC, market orders from traders trying to liquidate their positions....
Question: I have see some equities with small liquidity in options (200-300 in OI), but the bid/ask spread is relatively small. I'm afraid to...
I suggest also comparing the ATM straddle with a calendar and a butterfly.
TOS cannot change IV independently for each leg, only the entire position. I wrote them a suggestion to allow this, and they said they would put...
If you are going to spend $4000 for webinars and books, I would look at Dan Sheridan. For $5000 you get personal mentoring in addition to the...
One modest suggestion, when you "take the plunge", use one contract until you know what is going on. Thirty contracts is a very large price to...
I prefer calendars -- less slippage and commission. fly makes sense as alternative to calendar where there is high volty or skew.
FYI, the broker expects to get the request to bust a trade prior to the start of the next trading day.
You might consider doing the fly on RUT, or other ETF, not equities. The shorts should be ATM, adjust the wings so that you are near delta...
Have not looked at the numbers but here are a couple of other ideas: 1. Buy close to the money put, sell further out put, outside the range you...
Just some friendly advice -- find another market. The SPX is inappropriate for your account size, just on the slippage alone. Check out...
There are some webinars on cboe and thinkorswim web site which discuss this.
Here is how I see it: ATR is one day movement based on past price movement. The one day standard deviation is based on IV which is the...
As events show, the upside can be relentless, especially if the IV is low when you placed the position. It makes sense to protect the up side...
Study "Trade Your Way to Financial Freedom" (second edition) by Tharp.
What makes you think the author of any book is profitable or knows what he is talking about? Your "free" resources is worth precisely what you...
You obviously know little or nothing about options, except to buy a call or put. You can build a profitable strategy using only options, e.g....
>I managed to call the market move into this range (1405'ish) properly but now am in a pickle on what to do. Uncertain IV, possibly wide...
One example of mouse ears is to have more longs than shorts on the put side, e.g. long 10 puts, short 8. You give up some premium for insurance.
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