Destriero - Butterfly Trades

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

  1. .sigma

    .sigma

    Trading “partner” lol, more like trading slave. @El OchoCinco is still locked inside his cellar I think
     
    #271     Jan 15, 2021
  2. Sounds like I wasn't too far off, then - I set mine up (in sim, of course) using 100 point wings. I'll add another lot with 200s; it's marking ~18 right now. Should be fun!
     
    #272     Jan 15, 2021
    destriero likes this.
  3. destriero

    destriero

    My biggest position is this, from a one buck credit. Closed at 1.8 yesterday. Up 4+ on the day (today) to 6. Targeting 9 on the cover.

    Later, guys.


    2021-01-15_07-12-01.png
     
    #273     Jan 15, 2021
  4. taowave

    taowave

    You are in the 2900/2800 Diag put spread and the 3400/3500 Diag call spread???? Im assuming Long the 29th? When did you get that bad boy on for a buck credit? Im attempting to run sims on it and I am running into a problem..I think my Earnings date may be throwing me off
     
    Last edited: Jan 16, 2021
    #274     Jan 16, 2021
    cesfx likes this.
  5. destriero

    destriero

    I did some last week shorting the inside strangle and legging into the Jan29 to cover. Bought some this week outright (DD( from 1-2 debit. The position closed at 6.3x to the buy.
     
    #275     Jan 16, 2021
    cesfx likes this.
  6. taowave

    taowave

    Im having issues simulating theoretical edge on "time spreads" with my program....Dont trade them much,so your post alerted me to a potential issue...
     
    #276     Jan 16, 2021
  7. destriero

    destriero

    It won't stress using BSM. Vol as synthetic time. The vol-line gains over time as the Street puts a dollar figure on the strikes. AMZN post-report vols typically rally 3-4 handles in the week before release.
     
    #277     Jan 16, 2021
  8. destriero

    destriero


    Long the back 2800/3500 combo; short the front 2900/3400 combo.
     
    #278     Jan 16, 2021
  9. ironchef

    ironchef

    Is 132 usually better than 121?

    If so, why not 143, 154....?
     
    #279     Jan 16, 2021
  10. qwerty11

    qwerty11

    143 etc. you cannot trade natively because leg ratio must be < 1:4
     
    #280     Jan 16, 2021