I don't follow the journal section very much. He should also post in the option forums. Just the entry and exit - no long winded posts.
How wide do you like to get on your flies? risk of 1:1, 2:1...? I understand short gamma is a +ev trade BUT buying the wings is a -ev trade so does it not cancel out?
Oh ok. Funny. But yeah Optionsinvestor and Jackrab certainly belong on any top 30 list. OI is directional, but @JackRab is very impressive with his knowledge and his ability to explain it in plain English.
I don't have fixed targets. I model local payoffs (mostly flies) on price and time. I can't explain it in detail here, but you should have a methodology based upon "local vol" and price. I trade into a lot of events as well; macro data, reports, politics, weather, etc. 90% in an IRA. I have a model that triggers entries in index and 20-30 large caps. My primary trade is a 132C (231P) fly, but I trade 121s, calendars, diagonals. I have a taxable account for overwrites and pitchforks.
A trade in AMZN for a taxable account. Long 20 deltas on a 10-lot from 15.40 marketable. Short 50 shares against. I will follow up.
I'm trying to visualize this trade - I'm familiar with 1-2-1 but not 1-3-2. AMZN at $1,750 1-2-1 you want AMZN at about $1750 throughout the trade. But you have added a 1750/1725 put credit spread - again you want AMZN at 1750+. So your target for AMZN would be $1750 to about $1780?