Here’s this week’s positions for the option volatility model. I choose to use a time spread for the QQQQ’s and a diagonal spread for the S&P500 this week because both models predicted a rise in volatility for the underlying assets. Supposedly, these spreads should protect me from downside risk of an unhedged positions, only [...]
I had a way better results in my virtual options account this week. My S&P500 short straddle worked out nicely and my overall account gained +0.5%. However, the QQQQ volatility model seems to be wrong more than its right so I’ll have think about how to tighten that up.
Options expire tomorrow and if all goes well it will have been a profitable week, a lot better than last week’s option strangle debacle.
Here’s a quick snapshot of my positions, the short straddle is working out nicely but its very dangerous position. Short straddles, if unhedged, open you up to a lot of risk. [...]
Option volatility predictions for this week are: QQQQ = UP, S&P500 = DOWN. I entered one long straddle for the QQQQ’s and one short straddle for the S&P500. Here’s a snapshot of my paper portfolio positions.
Last week I made +0.84% on a $10,000 paper account trading the Option Volatility Model. This week I opened a $45,000 virtual account at Optionsxpress figuring it would be easier to keep track of things. I opened 4 positions on Monday, a long straddle and strangle in the QQQQ’s, and a short straddle and [...]
First things first, I’m completely new to the world of options and I welcome constructive comments on any future posts regarding this topic. Having said that, I have a confession to make.
I’ve been working with an independent Wall Street option trader for the past few months building a volatility model for option trading. [...]
Ever since I got fascinated by volatility, I began researching and studying stock and currency options. My currency broker offers “box options” where you create a “box” in the future hoping that the currency will either “hit” or “miss” the box. If you’re right, then you’ll get a payout. If you’re wrong [...]
