Destriero - Butterfly Trades

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

  1. ironchef

    ironchef

    OK, @.sigma, if I know it is sticky delta, do I trade 132 rather than 121 or vice versa?
     
    #291     Jan 17, 2021
    .sigma likes this.
  2. ironchef

    ironchef

    Never mind I should be able to work it out.
     
    #292     Jan 17, 2021
  3. taowave

    taowave

    Chef,it doesn't seem like you intuitively understand the subtle differences,and part of it is that you haven't traded a ton of them

    Alot of this is a feel one develops as well as an ability to spot a relative mispricing.

    Looking at the 100/105/110 fly vs the 100/110/122.5. 1x3x2,what factors would you take into considerstion??

    Sims are great,but you wont learm how to trade...imho


     
    Last edited: Jan 17, 2021
    #293     Jan 17, 2021
    .sigma, ironchef and BlueWaterSailor like this.
  4. Yah. That's a solid truth. And you just might find out you're not suited to it. In fact, that's really the only way to find out.

    I came in thinking trading was just (or mostly) a matter of being smart and being able to learn quickly; these days, I think of it more like fine carpentry. Sure, there are lots of fairly complicated things to learn - but they're not the thing itself; that's just the basic requirement, the time and effort that you pay so you can get to practicing the skill of trading.

    That's much along the same lines. You can be a pretty good commercial artist and make a steady paycheck if you learn the techniques well. But you're not going to become Michelangelo no matter how well you learn; past that basic level, you have to be, or at least have the capacity to develop into, something more than the ordinary.
     
    #294     Jan 17, 2021
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  5. deltaf0rce

    deltaf0rce

    10000%
     
    #295     Jan 17, 2021
  6. deltaf0rce

    deltaf0rce

    I’m not at your level but when realizing that vol was an extra profit opportunity to be made on an overnight position, it almost feels like you’re leaving money on the table by not embracing vol.
     
    #296     Jan 17, 2021
  7. ironchef

    ironchef

    Took me 3-4 years, countless hours reading, analyzing and went to school (Coursera) to figure out basic 121 butterfly set up. I hope it won't take another 4 years to understand the subtle differences between 121 and 132.

    That is a distinct possibility.

    So far I completed 12 butterflies. Set up 5 new 121 on Friday. I will know soon enough.

    I am no Michelangelo, don't want to be one, only want to learn how to painting, as an amateur.
     
    #297     Jan 17, 2021
  8. taowave

    taowave

    If you understand verticals,it should be relatively smooth sailing

     
    #298     Jan 17, 2021
    cesfx likes this.
  9. caroy

    caroy

    1:3:2 i believe is the same as a broken wing or skip wing.
     
    #299     Jan 17, 2021
  10. caroy

    caroy

    I like the 2:3:1 on high IV longer term 30 DTE plus. You can then sell a vertical against it and turn it into balanced 2:4:2. My thinking at the moment.
     
    #300     Jan 17, 2021