Wait, long wrangle is a double ratio backspread, and your position is a double ratio (front)spread - so maybe a reverse wrangle? I don't know.
long or short a wrangle - I can't remember which :)
I'm thinking the big problems are gaps and slippage in a fast moving market.
Since he said a good risk:reward ratio, I assume he's talking about a reverse IC (short condor equivalent). I always get confused with the...
It should be the same strike price, so sell the $45 Put.
I don't know the rules or what trades are allowed in a cash account, but I could see how a covered call is different from any other option trade...
BAC had an earnings announcement last Friday. Even though the stock moved in your direction, the implied volatility got crushed.
Yeah, my few pre-earnings calendar plays were doing great in the previous weeks, but those positions lost a significant portion of their profits...
congrats to both types of positions (bebpasco's and atticus') - interesting that both the reverse calendar and calendar positions made money. I...
That makes sense. Yes, my IC position would underperform other positions inside one sigma because of the insurance. I think that long streak...
atticus, that's an interesting statement. I'm now trying out both IC and calendars, which are doing well because the market is currently slow....
Yeah the cost of initiating the double flys is relatively expensive. I was looking at a particular strategy using it that potentially yielded...
Mark, if you buy calls and puts outright, doesn't that take a big chunk out of the initial credit? What sort of ratio are you doing it at, like...
Thanks John. I have looked at unbalanced butterflies like the BWB, though I've never actually traded one. It seems like a popular trade. I do...
John, I like the insurance idea - it's certainly more appealing to me than a straight IC . Being very risk averse, I'd probably end up...
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