Friday, October 9, 2009

SHLD - straddle?

I look at the charts and thought that this is a good straddle trade.

Will keep you informed if I place the trade.

Any comments or thoughts?



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2 comments:

  1. InnovestorOctober 10, 2009 at 5:05 PM

    I have a look at SHLD again. It is a high probability straddle trade.

    The earnings move is great. Look at URL : http://www.optionslam.com/earnings/stock.html?symbol=shld&x=0&y=0

    Besides with the horizontal V on my chart points to a breakout - up or down soon. Price has been compressing. The IV is low. And, in Nov earnings is going to be around the same time as option expiration. Talk about a better time for volatility!

    My deduction for straddle is that it does not need to end beyond the upper and lower BE points to make money. You can make money from the volatility moves with some price movements. Am I right? I welcome any comments.

    In my back test exercise, the straddle at 6-8 weeks makes more money than 8-10 weeks. But your risk is higher for 6-8 weeks as the time decay is against you. Also, 8-10 gives you a little more time for the trade to work.

    I will add more comments as new insights occur on trading straddle

    ReplyDelete
  2. josephOctober 11, 2009 at 10:46 PM

    The only thing we need to confirm is the earning date. I checked three sources, and they all say, "earnings date" unconfirmed.

    ReplyDelete

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About Me

An engineer by training graduated with B.Sc (hons) and MBA from Strathclyde university in Glasgow, Scotland. Started as an engineer in R&D for 3 years with Philips. Then, worked with DuPont for 13 years. Last job was VP, Marketing for Asia Pacific. Left to start a number of companies in various segments which include a large electronic distribution, a VoIP provider, an internet trading portal in Australia,and an executive training consultancy firm. Have listed companies in NYSE, Australia Stock Exchange, Singapore Stock Exchange Main Board. I was on the Board of Directors for 1 company listed in Thailand, 1 in Singapore and 1 in Australia. Was in the senior management of a company listed in NYSE. Still holding major share positions in the VoIP and Executive training companies. Both are private companies.

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