I have been playing around with a variation of the double diagonal and I want your thoughts on it. What would you think about buying a long dated straddle and selling a short dated strangle? The long dated straddle has some positive gamma and the short dated strangle is short gamma. Overall you can make the trade long theta by choosing the strikes carefully and making sure your short dated strangle is really short, 2 weeks seems to be the sweet spot.
So i need some advice. I made a couple of option trades on amazon before their earning call. Its a 11/8- 1750/1725 bear put spread and a 11/29-/ 1800/1820 bull call speead. Now amazon is at 1660 in after hours. Should close out just the puts and leave the calls or sell both spreads?
That's difficult to say because I don't know what your plan was before you got into the trade. Whatever that plan was then stick to it.... Otherwise you're just creating a plan on the fly based on my risk tolerance and not yours.
@@tradersflyofficial my plan was that if amazon missed earnings i would profit from the put half of the spread. While praying it would rebound in a couple of weeks to close the calls. Idid not plan for a $120 drop however.
Right so in the future we need to plan for other contingencies such as what if the drop was 200 or 300 or 400. What would you do. This is why people have a set price and if it's below that price then they are out. And of course sometimes it blows past that price which in your case it did
Is it hard to get my account upgraded to tier 3 so I can trade spreads, more specifically iron condors. Right now they don't let me do it with my account.
I would say yes if you are going 30+ days in duration. If you are doing shorter term iron condors like 10 days it won't matter much as the volatility won't help as much since there is less time and your theta is high
I have been playing around with a variation of the double diagonal and I want your thoughts on it. What would you think about buying a long dated straddle and selling a short dated strangle? The long dated straddle has some positive gamma and the short dated strangle is short gamma. Overall you can make the trade long theta by choosing the strikes carefully and making sure your short dated strangle is really short, 2 weeks seems to be the sweet spot.
Can we use both strategies at the same time to have neutral vega , and benefit only from theta decay ? Than what issues can we face ? , thanks.
Yes you can do that. You can split your Vega risk across multiple Strategies, but it does mean you have a more complex trade
Hello sir please tell us we should buy original window 10 Home or Pro version for trading setup thanks a lot sir.
It doesn't matter...
You need Windows 95
Sir window 10 home version or Pro version for trading setup thanks.
Which ever you like...
So i need some advice. I made a couple of option trades on amazon before their earning call. Its a 11/8- 1750/1725 bear put spread and a 11/29-/ 1800/1820 bull call speead. Now amazon is at 1660 in after hours. Should close out just the puts and leave the calls or sell both spreads?
That's difficult to say because I don't know what your plan was before you got into the trade. Whatever that plan was then stick to it.... Otherwise you're just creating a plan on the fly based on my risk tolerance and not yours.
@@tradersflyofficial my plan was that if amazon missed earnings i would profit from the put half of the spread. While praying it would rebound in a couple of weeks to close the calls. Idid not plan for a $120 drop however.
Right so in the future we need to plan for other contingencies such as what if the drop was 200 or 300 or 400. What would you do. This is why people have a set price and if it's below that price then they are out. And of course sometimes it blows past that price which in your case it did
Looking to try this one out soon
Perfect and wonderful to hear
Thank you!
You're welcome!
Is it hard to get my account upgraded to tier 3 so I can trade spreads, more specifically iron condors. Right now they don't let me do it with my account.
Shouldn't be too tough depending on your paperwork and risk tolerance you mark in your account
Ty
You're welcome
I don't understand.Why?
Iron condor is most profitable in high IV environments.
I would say yes if you are going 30+ days in duration. If you are doing shorter term iron condors like 10 days it won't matter much as the volatility won't help as much since there is less time and your theta is high