re: So, who is buying?

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looking at a strangle on SNAP for earnings next week...

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nooice...

that looks fun.
personally i would have kept that one on the downlow uptil you had your position..
(or maybe you're already in)

nlfx, roku, snap, fast.

those are my fav lotto cards
(no interest in holding...just quickie strangle plays)

what does strangle mean dude

I see snap doing well today

pretty big earning day in a pretty big week...

$biib and $pg were both good

got nervous holding a short (naked put) position on $TSLA...close that this morning.

still got deep OTM $MSFT and $LMT puts open..i'd love to pick up both if they fall to me.



$BIIB had an implied movement of 5%...that mo-fo is up 35% right now.

$snap is still crazy expensive...it is expected to move 15%

still watching $IRBT.. will probably go long on a straddle right before closing.

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how much time do you like to have before expirations?
do you strictly trade to volatility? ..or you want the time delay to?

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Sorry. Didn’t see your post earlier.

It depends on the strategy. I’m primarily a seller of premium. For most non-earnings related strangles or iron condors (I don’t do many straddles), I’ll go out as far as 40-45 days and I look to take those off around 20 days or so... sooner if I reach a 60-70% profit target. Yep, you got it, I want theta decay on the short legs without the gamma risk of expirations week on those.

For naked puts or calls, and some basic credit spreads, I trade a lot of weekly contracts, usually 7-10 days out. Those I prefer to let run til the end. I’ll only take them off if things get silly or I’m too close to ITM. Basically I sort by liquidity, then IV, then IV rank, then find the 20-25 delta (usually), then decide what strategy is appropriate for that ticker based on some simple technicals (monthly for trend and 5 minute to set up the trade).

I enjoy hearing what other people do, especially those who use strategies different from my own. Like I said, I pretty much only sell premium, so as to have a firm idea of the deltas/probabilities of success. But as long as a person is methodical and rules based, lots of different strategies can work. Something about the many ways that cats can lose their fur or some such

Very cool. Thanks for sharing that. When investing in equities, I also generally follow IBD rules/guidelines.

Have you ever listened to the Option Alpha podcast or gone to the site? Somewhat similar to the methodologies used at Tastytrade.

It’s all good.

I’ve really gotten a LOT out of his emphasis on diversity of tickers (a shortcoming of mine, as I tend to go tech heavy), position sizing and overall portfolio allocation to options strategies. I enjoy the interviews with other traders too. The one with the CBOE market maker was VERY informative.

I’d advise anyone interested in options trading to go to Option Alpha and download the *free* Strategy Guide.

I’ve never given Kirk Du Plessis a red cent. But I feel like this guy has saved me and made me thousand$ over the years.