That's stretching it too far. I would say there is about 20 ET members who make visiting this site worth it.
Hey Des, I am not battling you at all. Infact I have read all of your journals and find them very insightful. Your strategy is very simple and I would like to create a similar strategy. Some questions I have for you : Why do you create flies directional and not have the short strike where you can sell the most Vega? How do you come up with your stat vol forecast? Where do you place your stops to exit the trade? Thanks Des, have fun on the ocean
1-2-1 fly. Since maximum profit is at the short strikes that's where you place the "body" of the fly. ATM options will have higher premium - but if you think the underlying is going to move $20 after you enter the position you would place the "body" $20 OTM.
But if you think the underlying will move then a butterfly is not the best strategy to deploy. He trades butterflies to short vol. That's his primary idea. Then I guess he throws a bit of direction on it. So maybe my questions should be where does he get his directional bias from??
The trader would have to crunch the numbers first. For me it's momentum. All the stocks on my watch list are trending up.
Would someone care to share other alias for Atticus please ? The "original" atticus nick stopped in Jul 2013, as far as I can see. Just if someone is not aware, he was also interviewed in the book Traders of the New Era.
That is in the first edition of 2014 (the one I have). Sounds that an expanded edition was published in 2016. On that one he is in chapter 13.