SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Kim

CMLviz Trade Machine Webinar

Recommended Posts

One point was made that would "seem" to make sense, but after checking the prices, it did not happen as described.

It was mentioned that because of the extreme back and forth volatility over the past week or 2,  AAPL was up $6, then down $6 the next day, and back and forth like that over the past 1-2 weeks.

The claim that was made was that " this was a situation where just buying a straddle and selling it the next day, after a $5-$6 move, would have been profitable.

It is true that AAPL has been in a $7-$8 range, between $213-$222, back and forth almost everyday, or even more than once a day.

 

But those are the very extremes of the range......most movement has been between $215 - $221.......it would be unlikely for someone to catch 100% of every swing.

 

But, if you check the ($17-$18) straddle price of the strikes from $212.50 - $222.50, they are all pretty much the same price.

The volatility that has been going on has been priced into the options which now are "implying" these types of swings, and a straddle would not have gained after a $5 move in 1 day this past week for that reason.

At least not on the Nov monthly expiration.

Edited by cuegis

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.