Matt takes a look at trading a strangle on DECK with an expectation that DECK imp volatility will go up.
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6 Replies to “DECK Strangle”
Hi Matt, thanks so much for the heads up on the scouting report.
On the Bull and Bear Team trades I set alerts on TOS for the entry prices given.
Now on the Vega Team Trades, I wonder…
While searching for Straddles and Strangles to place for these now I thought, does it make a difference to create these orders while the market is open and fluctuating or is it ok to place Good Till Cancel Stop Limit entry orders on these for tomorrow with the prices given at this moment.
Thanks again!
Great Question edgardo!
I prefer to place spreads and any strategy with more than 1 option leg in during market hours. Reason is that the Bid ask spread can be quite large on a spread since they add them together. So during market hours try to place a limit order on the spread / strangle to get filled in the middle of the bid ask spread, also called mark or mid point. If you dont get filled after 10 minutes, replace order with a penny to five cents less and wait for a good fill. If you put in a market order after hours as a fill at market, you will get a horrible price, and if you do a limit you might not even get filled. I only do spreads after market and send them in for market if they are really tight between the bid ask of all the options I am using. Like stocks with penny options seem to have very nice small spreads. There are some really cool tricks you can do on think or swim for contingent orders that will automatically try to fill you at mid point. Maybe I will do a video blog soon on that.
Thanks Gino! I got it, will get on it when the market opens tomorrow so I get the best fill prices at the mid point or better, keeping in mind the excellent videos both Matt and Noah just uploaded where they give instructions on how to place these earning trades as well.
Hey Matt,
Loved this video! I watched it on tradingjustice.com on 9/15 & the video was really blurry.
But this one on tackle trading was really clear! Thanks!
Even though it was a blurred screen on 9/15, I did put the trade on because your instructions
were very clear!
I really appreciate all you ‘guys’ are doing to help us!
Francine, I love your passion for trading and your desire for knowledge. Welcome to the Tackle family
Should we consider getting some credit by selling Oct strangle for the same strike for the Dec Strangle already bought?
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