Humble

We usually trade the closest expiration after earnings. This gives us the highest positive gamma. Sometimes we do strangl s depends on where the stocks trades.

Watch my interview by David Lincoln

If we are very close to earnings, we might do straddle only. Otherwise hedged straddle.

We used to do it when we did pure straddles. Now when we do hedged straddles we hedge with selling shorter term options.

I would be usually looking at 7-10 calendar days to expiration, but sometimes there are exceptions.

Our goal is to be delta neutral. So lets take the latest YUM trade as an example. On Friday we had the May04 85.5 straddle and Apr20 short 84.5/86.5 strangle. The stock was at 86.40. After closing the Apr20 strangle, we needed to sell Apr27 options in order to remain delta neutral. Since the stock moved from the straddle price, the best way to stay delta neutral was selling Apr27 86.5 call. On Tuesday the stock moved to 85.20: The trade became delta negative (-33 delta) so we sold Apr27 84.5 put to get back to delta neutral: Now remember: reducing delta will turn against you if the stock continues the same direction. But our goal is to reduce risk, even if it means to reduce gains in some cases. We trade non-directionally, we do not want to take directional bets.

This could be a very interesting idea. The big advantage is that IV of long options is not elevated, so gamma gains will accumulate much faster. The downside is that if the stock doesn't move, there is nothing to support the straddle value. Lets explore it and get more feedback from members.

Welcome to SO and thank you for your kind words!

@CashflowsIn my opinion, 1.50/contract is way too much. I don't see why would anyone pay that much withTOS when there are so many good options available today. IB and TW are both good options. The following topics might help: Brokers and commissions Tradier Brokerage Special Offer Trading and getting fills with Interactive Brokers Tastyworks A New Brokerage Firm

Welcome to Anchor Trades provides a general description of the strategy. And yes, all our services have a free trial.

I agree that IB customer service is terrible, but they are still way cheaper than most brokers. And for international clients, this is often the only choice.

Take a look: 2017 Year End Performance by Trade Type 2016 Year End Performance by Trade Type 2015 Year End Performance by Trade Type This is one of our most successful strategies in the long term. Over 80% winning ratio.

Chris is our SteadyOptions fund manager. For retail accounts, we still don't recommend going higher than 100k.

Even if it's $40/month, it's basically free.

You can ask the same question about tradier?

I opened a ticket, the rep said this is how the algo works.

I tried to to buy 1 Apr SPX 1300 put and getting an error message that I have insufficient margin. The message indicates that the margin will increase by 53,985 (see attached image). I opened a ticket with IB. Their response was: I couldn't believe this, but the fact remains.

Maybe deep ITM to minimize the negative theta? Or modified collar, similar to what we did with SVXY, to provide some downside protection?

This is the big difference between IB and other brokers. And this is what TT won't tell you normally. IB smart routing - https://www.interactivebrokers.com/en/index.php?f=1685: Unlike smart routers from other online brokers, IB SmartRouting never routes and forgets about your order. It continuously evaluates fast changing market conditions and dynamically re-routes all or parts of your order seeking to achieve optimal execution and maximize your rebate. IB SmartRouting represents each leg of a spread order independently and submits each leg at the best possible venue.

@mccoyb53 You actually beat the official performance since our 14% is before commissions.. Well done! You are a live example what can someone achieve with commitment and determination.

@JeffD Thanks for sharing your experience! I think it is very helpful, especially for new members. I must say that you were very lucky with your transfer. Some members shared their experience while transferring money to IB that it took 3 weeks! And during all that time the account was locked and they could not trade. Potentially could be a cause if huge losses. Overall, you did very well, considering all the mistakes and circumstances. And sharing your mistakes should help others, so thank you for that. The most important lesson is in your last sentence: bottom line, I have had a blast, learned a ton, and I didn't lose money! But now I realize this will take years to learn. If you came to this understanding after 6 weeks, then I feel I did my job well. I welcome feedback from other new members. Those are among the most valuable topics for new members.

Trading and getting fills with Interactive Brokers Executing Orders in Interactive Brokers Yes, you can create spreads in IB. I highly recommend to learn the platform before doing live trading.

He was a member for 6 weeks. Then cancelled and wrote to me that he "cannot sit at the computer all day and keep checking the computer for what you are going to do next". Turns out he was not following any forums or topics, so he was not getting any emails. He also mentioned that "hedges straddles the broker wants a min. of 25k in the account" (probably was entering short strangles first). When I pointed out those points, he got really upset. The irony is that despite ignoring all our advice, he mentioned that he actually did make a little profit during the time he was a member.

Got the following message yesterday: As a service provider, I'm used to all kinds of people and all kinds of bashers. But meeting a racist was a first time experience for me. The guy claims to be an attorney and actually threatened to sue me.