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RE: The Best (And Most Profitable) Stock Trading Tip You Will Ever Get. By Gregory Mannarino

in #money7 years ago

Hey Greg. I get the approach of opening a straddle then closing one side of the trade when a direction has been established. However, I don't understand why you would enter the straddle to begin with and expose yourself to time decay and a possible drop in implied volatility before a move happens which would decrease the value of the entire straddle. Why not wait for a direction to be established and then only enter one side of the trade (with a hedge of course)? I appreciated when you used to give your prediction on the direction of the stocks and more than half the time you were correct which is a great trade percentage. I mean I can pick a stock that I know will break one way or the other in a short time frame but the direction is harder to predict. Wondering if you'd consider updating your direction of your picks or give some indication of what to look for when choosing the direction?