• Ocean Man
    Bought Sep strangles on ARUN for $2.42. $18 calls and $17 puts. IV capture.
    8/21/12
    Reply (15)
    • kylednaz: What is the best time to buy and sell these IV capture strangles?Buy 3 days before earnings and sell right before the close on earnings day?
      8/21/12
    • Ocean Man: I've been experimenting with that very question. 5-7 days out has been working better than 2-3 days out. 1-4 hours before close for sale.
      8/21/12
    • Ocean Man: It varies by stock though, and when there has been a big price move I tend to take gains earlier so it doesn't reverse.
      8/21/12
    • kylednaz: when there is a big price move of the stock in one direction, do you sell both sides of the straddle? or just the side the price moved to?
      8/21/12
    • kylednaz: sorry for hammering with questions, im just trying to learn more about this technique
      8/21/12
    • Ocean Man: Both sides because this is a short hold earnings IV-runup play. On my longer hold strangles I'll sell the side that's up big and buy cheaper
      8/21/12
    • Ocean Man: higher-striked replacements, or if the losing side has gone really low like 5 or 10 cents I'll just hold the losing side for a comeback.
      8/21/12
    • Maria Auziliadora: Ocean man you went short on this ine wekk I went the other way and madealot of money but sometimes we win and another times we lose
      8/24/12
    • det9: I shorted ARUN when it was 24 and made money..and stayed out of it...But we will see if it comes back to 25..
      8/24/12
    • Ocean Man: Maria - congrats. I didn't short it. A strangle is a bet that it moves big in either direction.
      8/24/12
    • Maria Auziliadora: got you!! I stilll havenot learned that one it isa little complicated
      8/24/12
    • Maria Auziliadora: OM do you own NKE pretty good dividend
      8/24/12
    • Maria Auziliadora: besides bein a great company!!!
      8/24/12
    • Ocean Man: No, but I like them long-term.
      8/24/12
    • Maria Auziliadora: I have them long term I love that dividend
      8/24/12