5 point wing is also important. SPY options are is American style. 1 point fly is highly speculative, IMHO. In order for it to work UL has to...
According to the guy who taught me, iron is the key due to different behavior of OTM calls and puts. Plus liquidity is better (.03-.04 spreads are...
I posted this setup in another thread but here is is again: On Wed on expiration week (That's Sep 19 for this month) open next month (Oct)...
@Put_Master: We all agree that excessive leverage is bad (LTCM anyone?) but why do youkeep arguing with a strawman? You keep saying that people...
Wednesday of the expiration week may be a day where some rolling activity starts - this is a bit of a mystery for me. Generally, when position...
Speaking of 'flies. Someone showed me a strategy that is set up as follows: On Wednesday of the expiration week (e.g. Aug 15 for August) sell...
One of the ways to trade vega only (well, almost only) is to buy a LEAP SPY put deep OTM. E.g. Jan 14 100. It moves mostly when SPY IV rises or...
Wow, so much fighting going on here. Take it easy, guys. Let's get back to the technicals. Adjustments - I have a rule of never averaging down...
Interesting info so far... Here is what my summary is: Calendars look like butterflies but there is a key difference. Calendars are vega...
Could you please elaborate on this? How did you manage to lose more than the initial debit?
Thank you for your answers. I see two contradicting ideas for time frame selection: SEP/OCT and OCT/MAR. For me it looks like the first one is...
I want to start trading calendars but there are several issues that hold me back. I am sure there are people on this board that have plenty of...
How did you come up with 7.2%? Just to make sure we're on the same page: the position is to be sold BEFORE the announcement not after.
I look at IV to see if it jumped already and if it did, I try to stay away from that position. Theta is misleading because it may be compensated...
I consistently buy pre-earnings straddles and sell them just before earnings. That exposes me to potentially large market moves that may have...
I don't delta hedge except for rolling a position higher or lower if it has more than 20% gain and 2 or more days till the event. It does not...
It does work. However, the primary reason for the straddle/strangle price increase is a pre-earnings stock move. IV rise is usually not the case...
I think the key here is to minimize losses. Generally, trading about-to-expire options produce more losers than winners if the expiration day is...
@webicknell: Does OH platform allow for position grouping similar to tradeMONSTER? I played with their demo account but could not find the...
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