8:56 PM
Ann Tucker
After a lot of down trending, two strong up day swings on 1/22 & 1/23 .
On morning of 1/24/08 I bought March IWM 70 Call @ 2.95
Then it turned into a possible reversal back down. So I caught near the high of the day and sold that 70 call for 0.35 more than I bought it.
Since the market is so news/event driven lately and doing big swings (even within a day), I thought rather than keep fighting the market in trying to figure out a direction or a range as in the case of iron condors, why not assume it will make some more big swings.
1/25/08 I bought March IWM straddle 68 call/put @6.90 (call 3.82, put 3.08)
Thanks for the idea Bruce!
When that order filled, I put limit orders in to sell them separately when they are 0.90 more than each was bought at. That is a swing of about 2 points in each direction. Looking at a recent chart, that seems probable.
I’m expecting the market to go back down. But I bought the straddle for March to give time for it to bounce up if it does swing as wildly as it has been.
On morning of 1/24/08 I bought March IWM 70 Call @ 2.95
Then it turned into a possible reversal back down. So I caught near the high of the day and sold that 70 call for 0.35 more than I bought it.
Since the market is so news/event driven lately and doing big swings (even within a day), I thought rather than keep fighting the market in trying to figure out a direction or a range as in the case of iron condors, why not assume it will make some more big swings.
1/25/08 I bought March IWM straddle 68 call/put @6.90 (call 3.82, put 3.08)
Thanks for the idea Bruce!
When that order filled, I put limit orders in to sell them separately when they are 0.90 more than each was bought at. That is a swing of about 2 points in each direction. Looking at a recent chart, that seems probable.
I’m expecting the market to go back down. But I bought the straddle for March to give time for it to bounce up if it does swing as wildly as it has been.
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