strikes are $15 bellow and $20 above the price... equidistant calls are more expensive than the puts.
Add-on
I am in above short strangle Dec 100/135 for $2.07 credit. Entered position when BABA traded around $114.90.
Hope is dangerous in this game.
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Disliked{quote} Trade idea (generates about $9.5 of theta decay per day): {image} strikes are $15 bellow and $20 above the price... equidistant calls are more expensive than the puts. Add-on I am in above short strangle Dec 100/135 for $2.07 credit. Entered position when BABA traded around $114.90.Ignored
Disliked{quote} Looks good. BABA has not been trading long enough to really show what he can do, so hopefully $135 is far enough out. What kind of margin hit did you take, per each strangle?Ignored
DislikedWith TWTR around $41, I shorted a 1 SD strangle 34/48 Dec19 with 45 DTE, for $1.07 credit. Price skew is to the upside, since puts are $0.45 and calls are $0.62... {image} With b/e points $32.93 and $49.07... this has to move 20%+ either way... plan is not to hold until expiration, rather to close according to "cheat sheet"Ignored
DislikedAccording to "cheat sheet", it takes 15 days for 40%... So, basically, if you have that in 9 days - close and redeploy... or partially close if you have more than 1 strangle... learning, learning...Ignored
Disliked{quote} Takes time. It's good you are keeping notes - not much record available for TWTR. There's alot to be said (I've said it before) for limiting to a short number of instruments, learning how the options behave at different times, in different scenarios. I am still a beginner...Ignored
Disliked{quote} Yes, exactly. Like 10-15 stocks... Since I have time to sit the entire trading session in front of a screen, I often look at various options, previous trades and so on... Learning about IV relationship to the price, probabilities... Yesterday I was watching Rising Star videos of Tony from Mexico and Robyn... they both did 42% YoY in 2012... on LARGE accounts... Tony said "you can be good in 3 months"... I see that, since I have never ever learned so much like last 3 months.Ignored
DislikedHi, CG! As TF would said "lot of dry powder" on my account right now... I only have some long VIX positions from before... underwater off course. Just looking everywhere... Lot of tech stocks in red now Add-on With TWTR around $41, I shorted a 1 SD strangle 34/48 Dec19 with 45 DTE, for $1.07 credit. Price skew is to the upside, since puts are $0.45 and calls are $0.62... {image} With b/e points $32.93 and $49.07... this has to move 20%+ either way... plan is not to hold until expiration, rather to close according to "cheat...Ignored