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This is a strangle using short ratio spreads. My overall position delta is 0.01 .
I am not concerned at all for this position because:
(1) It is very small.
(2) To a good degree I know and can control my risk.
(3) Whether CL goes up or down I have a plan.
Parabolic - Parabolic Uptrend Stock | TheStockBandit.com
thestockbandit.com/parabolic/ Cached
This stock went parabolic and gained in volume and price move at the end of the run. What began as an uptrend quickly became panic buying, driving the stock ...
What is a Parabolic Move? : Prometheus Market Insight What is a Parabolic Move? : Prometheus Market Insight Cached
14 Oct 2010 ... When it comes to chart analysis, we define a parabolic advance as an uptrend during which the angle of ascent increases as the move matures ...
Stock Markets Bubbles and Parabolic Slope Theory :: The Market ... https://www.marketoracle.co.uk/Article45096.html Cached
5 Apr 2014 ... A bubble is a parabolic advance in a market or stock where the price appears to move straight up without normal corrections. The corrections or ...
The Curse of the Parabolic Move - Growth Stock Wire Watching Parabolic Moves in Stocks Cached
30 May 2013 ... We first warned about the dangers of the parabolic move in utility stocks a few weeks ago. You can see what has happened to the sector since
I've gone through a bulk of the Gross/Cordier materials and they have said that a "naked" option isn't an automatic death sentence if it's managed properly. I have a hard and fast exit if the premium reaches 200% of what I paid, no exceptions. However I can see that I'm closer to the money than my gut would like, as john mentioned it would explain the nerves. Combine that with the feedback I received on this thread lead me to modify my trade this morning to include some protection in the event the price moves against me.
I bought 4 March15 calls at $57.5 putting me into a 1/3 ratio spread. Given the price decline this morning it was a very cheap insurance policy at $200.
Interesting observation, even though the price of oil moved in my favor OX increased my MM because of "volatility" accoring to the broker moving the MM from ~15k to ~21k. The addition of the insurance policy brought it down substantially, from ~21k to ~13k but still. Ron's rule of 3x in cash is proving to be a necessity more than a best practice.
I don't have enough cash to place a trade on the downside but would probably do another Ratio Spread on the put side at the $25 mark given it's trading at .05 right now. Maybe if the margins come down a bit more as time keeps marching on.