Destriero - Butterfly Trades

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

  1. newwurldmn

    newwurldmn

    Skew is a complicated trade. It takes a big notional position to make moderate dollars.

    My experience is that if I profit from sticky delta, I would have made money trading delta in 1/10th the notional.
     
    #311     Jan 19, 2021
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  2. caroy

    caroy

    Thanks for sharing this and the rationale behind the set up.
     
    #312     Jan 19, 2021
    .sigma likes this.
  3. ffs1001

    ffs1001

    @BeautifulStranger, excellent post. Very informative.

    I'm curious why you like to see the bid/ask in terms of vol as opposed to actual prices?
    Another format maybe to show the vol as well as the option prices, which is what I normally use :

    upload_2021-1-19_13-38-34.png
     
    #313     Jan 19, 2021
    .sigma likes this.
  4. I like to see what the relative difference in vola for each strike for selection purposes. I might think something like, “Damn, I can get 50 basis points more vola for moving my the body one more strike ATM and it is only costing “X” vola more on the single DOTM leg, deal!”. I’ll see the actual prices when I select a particular option. From there, if I like my greeks, I’ll add the spread to my watchlist and maybe place an order.
     
    #314     Jan 19, 2021
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  5. taowave

    taowave

    My experience is the next time I make money from riding with sticky Delta will be my first :)







     
    #315     Jan 19, 2021
    deltaf0rce, ironchef and newwurldmn like this.
  6. caroy

    caroy

    I have one dog named Butters. I'm eying a new one and will name it Sticky Delta.
     
    #316     Jan 19, 2021
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  7. taowave

    taowave

    Love the concept,used to live by it,but I have found "gut trading" short term verticals to be a better approach..

    As painful as it is,I buy in all my pennies,and I buy in short verticals for pennies...

    9 days and in,if I am trading any type of fly structure,I don't even look at vol..





     
    #317     Jan 19, 2021
    ITM_Latino, cesfx and deltaf0rce like this.
  8. Did Covid change your plans for attending the Inauguration? If your still going please be safe, I know you could smack down any sock puppet but there are some bitter ass looney tunes so again, please be safe Sensei!
     
    #318     Jan 19, 2021
  9. ironchef

    ironchef

    Thank you for the coaching.
     
    #319     Jan 19, 2021
  10. ironchef

    ironchef

    #320     Jan 19, 2021
    Centuria100 likes this.