But if you left it unmanaged and closes above 115, you end up flat anyway right? (just losing the debit if it was initiated as a sym. natural per your example). The real assignment risk is if spot closes between 115 and 105. Please correct me if am wrong, sometimes I get such a hard time closing them that i'm exploring the what-ifs in letting some of them expire.
Report card time. First 30 flies, 63% winners and 37% losers. Overall profitable but not killing it. It was a simple setup, 121 call flies 1 SD wide, 30 days to expiry. Used Chef's opinions to forecast direction for belly/body placement. Took profit when target was met. As for trade management, after early fiasco tried to make adjustments, for later trades, simply let them expired. This setup ignored all the stuff @destriero talked about, microstructures, skew, etc. and was a pure directional play. It is good enough to place small trades for fun and for pocket money but not ready for prime time. Great thing about fly: The downside is limited. The study continues.
did you initiate the fly ATM? Or slightly or farther OTM? also, which products have you been testing these on?
Limited up side too. If you narrow the wings to almost nothing you can get a R:R >> 1 but then it is like playing lottery.
Never ATM. Mostly OTM but sometimes ITM. SPY and single names, a few I already mentioned in prior posts.
I had a profit target prior to entering the trade. Once met, closed the trade, no exception. If the trade went against me, I let it expired whatever the outcome. It is just an experiment, not a secret source.