LOL, hey man, talking with Des is like reading Shakespeare... You have to read it a few times, and then once you finally understand it, you ask your self "why didn't he just say..." LOL. He is very informative once you break it down.
Hi @destriero Just some very basic questions: 1. I'm wondering if the if the outside wing for these flys is the longer wing? 2. Plus are you entering at low IV and exiting at higher IV? I'm re-reading the Natenberg and Baird books looking for an answer as I'm just an option newbie.
Asym flies? The outside wing would be the narrow strike vertical (where the risk is doubled inside the strikes); IOW, outside of that strike = all strikes are now ITM. Depends on whether the fly is ITM or not. Generally we're trading flies with an ITM leg, so it's short vol. Even an OTM fly is nominal on (long) vol.
Thanks @destriero I get it now. I've been modeling various combinations of strikes and I see what you mean.