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can u spell overtrading? my IB portfolio window on friday was so crowded with (over) trading, i did not see the 2 positions i have on in MS both calls & puts for next weeks xpiration. i have nearly identical amounts of money in each - the 17 calls and the 20 puts. WTH do i do now? i guess, duh, just sell the loser come monday morning. i am not a very sophisticated options trader - all i do really is substitute a call or put for the stock and daytrade it. i don't even remember how i ended up holding both calls and puts at the same time - that is not my usual way - it must have been a fat finger mistake. any tips much appreciated.
Du sublime au ridicule, il n'ya qu'un pas. ~Napoleon Bonaparte
Can you help answer these questions from other members on NexusFi?
yeah if it weren't dratted expiration week it would be better. maybe the market will be indecisive at the open (unlikely) and i can get out with just a bit of time decay loss. luckily i did not trade big...ty for the good wishes
Du sublime au ridicule, il n'ya qu'un pas. ~Napoleon Bonaparte
An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.
This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. (*)
Only thing you lose is time decay over the weekend if market volatility not falls. Other wise you also will make some losses with vega. As you are long call and puts, you have break evens on both sides. Do you know where your break evens are ?
Just one idea: Depending on your market outlook you can sell the options from the direction market not moves and hope that you will get back the loss with the option market direction moves.
thank you very much i wouldn't know a strangle from a mangle, honestly. gotta read up on those now and make a plan for monday morning. i don't completely understand the bit about doubling the ones i sell though but perhaps that will become clear as i look into these strangles.
Du sublime au ridicule, il n'ya qu'un pas. ~Napoleon Bonaparte
