Some of the volatility plays in my OC volatility journal are TLJ-like positions. I have one on GOOG and ISRG right now and will open one on AAPL tomorrow as well.
Coach, What is your exit timing on these? I have on a couple long vega positions on these (among others) where I'm going to bail just prior to earnings releases. Look at the IV chart on ISRG! I'm working on optimizing the month selection for the long options. They have bigger vegas but smaller IV moves.
I have no idea how all of the names were determined but many of them were derived from their appearance on a risk chart. The nice thing about options is that they give you so many options, no pun intended. You can pick your risk levels and stress levels. You can hedge stocks against loss which is what Optionetics teaches. You can do so much more strategic investing than buy and hold. It is the thinking woman's product. Linda
Call backspread Long put spread or bear spread (volatility down) Short combo Call ratio spread Long semi-futures (volatility up) Short condor call Long call albatross Long semi-futures (volatility down) Short condor gut iron Long gut iron albatross Long straddle Short condor iron Long iron albatross Long strangle Short condor put Long albatross put Long gut strangle Short fence (volatility up) Long butterflies call Long call synthetic Short fence (volatility down) Long butterflies gut iron Long call semi-futures synthetic (volatility up) Short call Long butterflies iron Long call semi-futures synthetic (volatility down) Short put Long butterflies put Long put synthetic Short put christmas tree Long call christmas tree Long put semi-futures synthetic (volatility up) Short put spread or bull spread (volatility up) Long call spread or bull spread (volatility up) Long put semi-futures synthetic (volatility down) Short put spread or bull spread (volatility down) Long call spread or bull spread (volatility down) Long underlying Short semi-futures (volatility down) Long combo Put backspread Short semi-futures (volatility up) Long call condor Put ratio spread Short straddle Long gut iron condor Short call albatross Short strangle Long iron condor Short gut iron albatross Short gut strangle Long condor put Short iron albatross Short call synthetic Long fence (volatility up) Short put albatross Short call semi-futures synthetic (volatility up) Long fence (volatility down) Short call butterflies Short call semi-futures synthetic (volatility down) Long call Short gut iron butterflies Short put semi-futures synthetic (volatility up) Long put Short iron butterflies Short put semi-futures synthetic (volatility down) Long put christmas tree Short put butterflies Short put synthetic Long put spread or bear spread (volatility up) Short call christmas tree Short underlying Long put spread or bear spread (volatility down) Short call spread or bear spread (volatility up) dddd Long semi-futures (volatility up) Short call spread or bear spread (volatility down)
Don't forget Buttafuoco. Can't remember the exact construction of this position, but this is what the guys on the floor called it because it was so messed up. If I remember correctly it ends up replicating a somewhat simple position but is used to trick SPAN so there is less margin requirement.