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Pippovic
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Thanks very much for the explanation. Personally I need a chart to visualise the P/L, so it's pretty impressive that you assess risk based on the deltas. You are right about premiums with trading earnings via a straddle/strangle, unless you buy this way in advance, that's why I mentioned that it CAN be good but if there are no movements or the movements are not big enough, you can get burnt...like me in the past.... If IV stays around the same, you'll be making some good profit if GS moves over 105.50 or under approx 92. Could I just ask how you got to choose specifically GS for a straddle? I would have expected it just to be bullish, and there are enough other strategies for that. Look forward to the updates. Pippovic
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Hi Options-trader, Is it possible to put a P/L chart here for your position? The way I read it you now LONG 80 contracts on the PUT side (AUG95 and SEP100) and 40 on the AUG95 CALL side. If I visualise this, the P/L chart looks very skewed to the bearish side. To me it looks like a lot of risk, should GS continue to rise in the next 2 months and it is currently trending bullish. Straddles can be good in Earnings season and there is always the possibility for the stock to gap up or down. But I think the earnings announcement for GS is not known yet: GS Company Events | Goldman Sachs Group, Inc. (The) Stock - Yahoo! Finance I have also checked the volatility on GS and the Implied Volatility for both August and September is lower than the Historical Volatility. This could imply that the stock is slightly bullish. All together it looks to me like a risky trade, so it would be good to see on a chart what the max loss and profit are in your current position. Thx!
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BroCo Investments Inc. alleged to have manipulated client positions | Forex Magnates
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With regards to options I don't think it's solely a matter of supply and demand of the underlying. It certainly is a big factor of the pricing model. The AMOUNT of supply/demand (volatility) plays a role, the SPEED of which the underlying changes, including the time decay until expiration and any unforeseen circumstances. S&D would be good indicators for a future direction but how are you going to determine that in advance? As far as I know about futures, I believe that supply/demand plays a bigger role there and you probably can determine future directions a bit more easily because of circumstances (weather conditions, wars, natural disasters etc.). But again, how do you know in advance? So in my opinion Time and Sales alone are not good enough but certainly help.
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Spreadbetting Journal £1,000 - £30,000
Pippovic replied to goldenbull's topic in Spread Betting & CFDs
So far it doesn't look very promising... -
Introduce Yourself Here - Don't Be Shy!!
Pippovic replied to trading4life's topic in Beginners Forum
Hi Rob, Just like you I visited the Expo in London and registered on this site, so this is my first post. I wasn't aware of it before. I'm not totally new to trading but I'm looking to focus a bit more on options and possibly futures. Spreadbetting on forex can be profitable if you get some guidance. I learned the hard way without guidance and banging my head but made some good money over the years. If you're talking about a mentor/coach in the sense of people charging you thousands of pounds/dollars/euro/pesos/lei/etc, then I'm personally very sceptical. I'm not a fan of technical analysis in Forex. I did get tangled up in drawing support and resistance lines, fibonaccis, elliot waves, bollinger bands and possibly some other instruments that you can think of, including testing some Expert Advisors on MT4 platforms but Forex markets are not driven by a green candlestick bar superceding a red bar or vice versa. If I can help, then let me know. My main reason though for joining the forum is to learn more about options. Cheers, Pippovic