Day trading option straddles
Did you try to see if we can exit with a profit target instead of eod trade. Also, the price of AAPL allows one to enter fewer straddles to save on commission costs. The Daily Straddle — Part 2. It was an interesting prospect, worthy of the investigation that you gave it. Straddle traders are day trading option straddles betting that the win from one will be bigger than the loss from the other.
There are several downsides to a straddle trade as well. The author is not affiliated with Lightspeed Trading and the content and perspective is solely attributed to the author. This article is provided for educational purposes only and is not considered to be a recommendation or endorsement of any trading strategy. Subscribe to The Option Day trading option straddles by Email. I really like getting your observations, nevertheless.
Once it stops working, I will look for another underlying that meets my criteria. Bill, Thanks for the comment. Too good to be true?
Large Cap Momentum Trading. This article is provided for educational purposes only and is not considered to be a recommendation or endorsement of any trading strategy. Subscribe to The Option Guru by Email.
Yes, FAS also appears to be a good candidate. Options are constantly suffering from time decay, but earnings traders can reduce the impact of that time decay by initiating the trade right before the earnings release. David, It may be that you went too far into the past. With Day trading option straddles earnings season just around the quarter, a number of companies will be reporting critical holiday sales numbers that will set the tone for and beyond.
Subscribe to The Option Guru by Email. Thanks for the comment. I want to back test more to develop my rules. But, as Ron said, lower IV is more ideal.