One area to consider is that directional trades (long calls or puts) are your highest risk trades. Theta is constantly working against directional plays. With these high risk plays come high rewards and high losses too. A vertical trade accomplishes several things. 1. It is cheaper to enter a vertical instead of a directional. 2. The stock doesnt have to move as far to make a profit. 3. The probability of a winning trade is increased with verticals. In some cases, the stock can remain flat or even move against you slightly and you can still profit. With this increased probability, you limit risk which limits your gains. 4. Legging in and out at the proper time can produce profit in all directions.
Going for the big kill by playing directional is less important to me than getting a winning trade (and less stressful)
Hi Tommy, Could you please send me an email at leemalone2k3@yahoo.com and I will send you the info. I seem to have misplaced your email address. Thanks, Lee
I was too. Just buying calls and puts, i need to start protecting my investments. Going to start with some basic straddles/strangles and work from there. Im only approved for level 2 right now.
Market Data 
Markets 
