Destriero - Butterfly Trades

Discussion in 'Options' started by ironchef, Dec 11, 2020.

  1. taowave

    taowave

    Not my first choice to take to the prom,especially as a hedge
     
    #221     Jan 12, 2021
  2. destriero

    destriero

    Which would you rather own by FebEx, terminally?

    2021-01-12_06-59-24.png

    Skew edge on index, but obviously it's not much of a notional edge. Outright puts on single names.
     
    #222     Jan 12, 2021
  3. destriero

    destriero

    lol.
     
    #223     Jan 12, 2021
  4. taowave

    taowave

    Dont worry brother,Im not giving that shit away no matter how much they offer :)


     
    #224     Jan 12, 2021
    johnarb and destriero like this.
  5. destriero

    destriero


    There's no gamma in a DITM. There are no exposures, period. So why buy a DITM bear put vertical at 90/100? It's equivalent to shorting the DOTM call vert. It's not a hedge. It's what I've been railing against.

    Buy the 10/100 verticals. It's largely too costly to buy outrights on index unless you're days to expiration. Also a good idea in modern times to have nuke-insurance.
     
    Last edited: Jan 12, 2021
    #225     Jan 12, 2021
  6. ironchef

    ironchef

    I know you were not asking for my advice, and as an amateur retail, I am not qualified to give advice. But no one responded, let me give you my experiences:

    1. I learned chart reading skills on ET, charts are like X-Ray, CT in medicine.

    2. I supplemented the information I got from charts with fundamentals.

    I have been trading single leg directionals since 2013.
     
    #226     Jan 12, 2021
  7. taowave

    taowave

    LOL...."What the fook" is this amateur retail classification???
    If you make money,you are overly qualified..If you lose alot,you can teach us what not to do :)
     
    #227     Jan 12, 2021
    johnarb and destriero like this.
  8. My diagnostics equipment must be down, then. I think I've tried damn near every TA method out there, and not a single one of them has been better than a random pick. Either I'm missing some key, or there's a magical Bad Luck fairy following me around when I do this. I've looked into FA as well, and generally avoid underlyings that don't have good numbers - although for the most part I focus on liquidity and a general upward trend.

    My record on spreads is absolutely abysmal. I've done something like a hundred of them by now, and recall only two that actually worked well. It drives me bats. Definitely would appreciate any advice you can offer, because my own efforts got me nowhere.
     
    #228     Jan 12, 2021
  9. ironchef

    ironchef

    I don't use any TA, not even Moving Averages. Just raw price/volume, with bars. Bars because the fellow who taught me how to read (MrScalper in the thread "why is the obvious not so obvious") used bars. Individual equities each has their own signatures/patterns (X-Ray, CT) and if you look at one of them long enough you can usually recognize their behavior, especially thinly traded equities. And when I said FA, it is not PE, PEG... but specific events like new products, new drugs, M&A.... etc.

    Spread is a completely different animal than single leg. Single leg follows the underlying direction closely whereas spreads are also affected by second order effects which are difficult for us amateur retails to analyze. So, I stayed away from spreads.

    Best regards and stay safe.
     
    #229     Jan 12, 2021
  10. ironchef

    ironchef

    Not even a tiny hint? :D
     
    #230     Jan 12, 2021