straddles and stocks likely to breakout

  1. 1,368 Posts.
    I suppose this is getting a bit too mathematical for most punters, but for what its worth, here goes.

    Straddles 5, which was cba , rio, and ncp is almost finished, having closed cba on expiry, and rio yesterday. The bet is up 28% over 2 weeks, and remember that we were insured against downside moves.Still holding ncp a bit longer.

    Straddles 6 starts today, and my system threw up
    wow, tls, anz, wbc, and bhp as the stocks most likely to break out and move a lot. Yesterday I said I had no signal on wbc, but today I have a go sign on both wbc and anz.

    I'll trade it over 2 weeks and keep you updated if you are interested. I recommend buying puts and calls that total around $2,000 on each stock. Any less than that, and commission will eat you.You have to have access to an options feed to follow these trades. Sorry, you cant do it with warrants.

    All 5 straddles this year have made over 15% profit in 2 weeks. I pick stocks where volatility has fallen and is due to rise, according to my custom built indicators.

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