Destriero - Butterfly Trades

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

  1. destriero

    destriero

    Here's my delta pos going into the report, to include my hedge. So net D:

    2021-02-02_13-56-05.png
     
    #441     Feb 2, 2021
    Atikon and eternaldelight like this.
  2. ironchef

    ironchef

    OK, let me share my lessons learned on both trades: GILD 121 fly Feb 5 61/64/67 and GILD 121 fly Feb 12 60/64/68.

    These were some possible paths at the time:

    1. Stayed the course and let the flies played out.

    2. Rolled the upper spread higher.

    3. Closed out the upper spread.

    4. Closed out the flies.

    I selected #3. GILD closed today @$65.83

    On the 61/64/67 I will let the bull spread expire tomorrow so the fly should record a small net profit.

    On the 60/64/68 the bull spread has a week's run time and max profit of 25% at expiration if GILD stays above $64.

    #1 turned out to be the best course of action. I could have booked significant % profits on both if I closed them out early this week instead of 1-21-21.

    Next time I will remember @destriero's coaching.
     
    #442     Feb 4, 2021
    caroy likes this.
  3. Overnight

    Overnight

    Dude, man, you make money whether the stocks go up, down, sideways, or invert into the space-time continuum, with your complex diagonals and verticals etc..

    Even when you are wrong on a wing, your other legs you will somehow make a profit from. At the least you will be at BE, maybe have a small loss on the whole position.

    Go away, inhuman cyborg trader! lulz
     
    #443     Feb 4, 2021
  4. deltaf0rce

    deltaf0rce

    I bought a spy fly today 85/80/75 put, feb 5, for .81 and sold it for .82. Lost on ticket charges. But I’ll take it!
     
    #444     Feb 4, 2021
    .sigma and caroy like this.
  5. cesfx

    cesfx

    I finally bought a 231 put fly on ViX, 28/24/23 Feb exp, when ViX was having fun about gme, thanks to what I learned here.
    It moved into profit quickly and I sold it back after for 1:1 (about 2$) to avoid another spike risk. Thank you traders
     
    #445     Feb 5, 2021
    .sigma and caroy like this.
  6. .sigma

    .sigma

    You guys quoting flys in descending order are friggen badasses! Lol
     
    #446     Feb 5, 2021
    caroy likes this.
  7. .sigma

    .sigma

    375/80/85? When did you buy it? What was your basis/bias for entering? Why close it?
     
    #447     Feb 5, 2021
  8. Justrade

    Justrade

    Nice job... Shouldn't the 23 be @ 22... jus saying ... wink... wink
     
    #448     Feb 5, 2021
    cesfx likes this.
  9. ironchef

    ironchef

    Update:

    Closed out both flies, both profitable.
     
    #449     Feb 5, 2021
  10. ironchef

    ironchef

    Should I change my nomenclature so I can join the badass club too? :cool:
     
    #450     Feb 5, 2021
    .sigma and caroy like this.