My new metals related positions opened today: SLW OCT12 Vertical spread Sold 1 Put of $34 for 1.96 Bought 1 Put of $32 for 1.13 Gross credit received + 0.81 Max Reward: Credit received minus comm Max Risk: - 119 + comm BE: 33.19 Objective: Will close position when I can obtain a net result of 80% of initial credit received. * GDXJ OCT12 Butterfly Bought 1 Call of $22 for 1.38 Sold 2 Calls of $23 for 0.88 Bought 1 Call of $24 for 0.58 Gross debit paid - 0.20 Max Reward: 80 minus comm Max Risk: Initial debit paid BE: > $22.15 and < 23.85 Objective: Will close position when I can obtain 50% of max reward, that is 40 *** Comments always welcome.
Less complex trades for me (all I know how to do!), with lots of time till expiration (helps me sleep better!): January GLD 150/149 Bull Put Spreads January GLD 165/164 Bull Put Spreads March GLD 175 Calls March SLV 30 Calls
theres nothing complex about butterflys... great risk reward.. they get cheaper and cheaper as you go otm.. cheap bets on the market going up... synthetics give you great leverage.. nothing complicated there either.. same risk as Underlying with a hell of alot less outlay... butterflys are a little better then otm calls because they keep their value over time better and you still get a good payout .. and you don't even have to be nearly right to make money
Read about them both in passing, but haven't tried them yet. Like what you're saying about Butterflies. Will check those out first...
WRONG ...... Butterflies are cheapest when the body is ATM and the wings 1 strike OTM. And an OTM butterfly is useless.
<font size="20"><font color="green"><b>LET ME SHOW YOU</b></font> <font size="3"> aapl call flys on the weeklys.. ATM 660/665/670 = 1.09 OTM 665/670/675 = .79 OTM 670/675/675 = .38 </font>
These are "Iron Butterflies" you're talking about? Have some articles and videos about those already in my 'peuter.
iron butterflys are just using both puts and calls... the examples i used are all calls... 1 call lower strike -2 calls next strike up 1 call another strike up.. i'll show you a picture here in a sec