Destriero - Butterfly Trades

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

  1. destriero

    destriero

    Microstructure on synthetic flies is much cleaner than trading an ITM leg. I trade 2-3K contracts a day (in/out) and my average fill on all spreads/combos is 0.3% off mid as a price taker.

    GOOGL 1700/1800/2000 231 put fly = 2x1700/1800 bull put verts x 1x1800/2000 bear call vert (combo). I don't have the numbers in front of me but IIRC the Px-improvement is on the order of 0.1%.
     
    #411     Jan 28, 2021
  2. ironchef

    ironchef

    I often got better fills when I traded right after market opened and there were lots of uncertainties.
     
    #412     Jan 28, 2021
    Dmajirb likes this.
  3. ironchef

    ironchef

    Good to know. Thanks.
     
    #413     Jan 28, 2021
  4. Dmajirb

    Dmajirb

    I was unclear, I typically don’t leg and experience horrible fills on SPX if I can get a fill at all. I have tried to leg in/out to improve fill price but as mentioned before is small hit or big miss. With U/Ls that can be purchased directly (such as GOOG) I get much better fills when go synthetic route, however since I trade SPX almost exclusively I don’t have that option directly and would prefer to not use /ES as substitute.
     
    #414     Jan 28, 2021
  5. Dmajirb

    Dmajirb

    Do you consider SPX to be thinly traded?
     
    #415     Jan 28, 2021
  6. ironchef

    ironchef

    I don't know about SPX because I trade SPY. Look at what else I traded: 121 butterflies on GILD call options.

    upload_2021-1-28_22-2-45.png

    Very difficult to exit at mid.
     
    #416     Jan 29, 2021
  7. destriero

    destriero

    GME is going to announce an offering/secondary next week. Stock will hit $550 and crater to $250 by the end of the day. Be careful, fvckers.
     
    #417     Jan 29, 2021
    BlueWaterSailor, cesfx and KCalhoun like this.
  8. deltaf0rce

    deltaf0rce

    Dude stop it... who in their mind is going to buy stock here for their fund.
     
    #418     Jan 29, 2021
  9. Atikon

    Atikon

    Have you seen what happend in amc? They converted notes the day after the stock went +300% into 44M shares, the stock halfed on that news
     
    #419     Jan 30, 2021
  10. mukoh

    mukoh

    Why wouldn't they announce another offering? At this $300+ it would be irresponsible not to. People on some reddit were saying they were short at $380!!!

    This vol spike was awe to watch. How would a vol insanity on this be tradeable? A diagonal?
     
    #420     Jan 30, 2021