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Discussion in 'Options' started by ajacobson, Mar 25, 2024.

  1. ajacobson

    ajacobson

  2. FSU

    FSU

    What I think is really interesting here is they say that "open close data confirms customer side" They say they know the customer sold the butterfly.

    I didn't know this information was available, that you could tell that the order was a customer and whether it was opening or closing.
     
  3. cesfx

    cesfx

    Is that an ITM short put butterflies traded 10min before expiry?
     
  4. cesfx

    cesfx

    I am still trying to understand the trade, how did they get $1.35cr fill for that size that late?

    If I put it on now I see about -0.50 mid

    Was it possible because the options had 10min left before close?
     
  5. 2rosy

    2rosy

    are the likes for that butterfly because it made a profit? what was the edge? what was happening in other related markets at the time?
     
  6. newwurldmn

    newwurldmn

    I'm guessing the edge was in microstructure. He was able to trade one leg and covered with the others.
     
  7. Butterfly's are garbage trades...basically the options version of a lottery ticket.
     
    Last edited: Mar 26, 2024
  8. cesfx

    cesfx

    Then short them and reverse the win rate.
     
    ironchef likes this.
  9. 2rosy

    2rosy

    that butterfly told me there was a 27% chance that SPX closed at 5245
     
    cesfx likes this.
  10. Because the RW is also reverse. :)

    Clipboard02.jpg
     
    #10     Mar 26, 2024