Open Interest Pinning and Butterflies

Discussion in 'Options' started by caroy, Jan 3, 2021.

  1. caroy

    caroy

    Also put on the AAPL 133-134-136 BWB @ .55 credit hoping for the 134 pin.
     
    #21     Jan 4, 2021
  2. ffs1001

    ffs1001

    @caroy , you may be interested in this book - it a good read and has quite a lot on the pinning effect. It's small and at about 140 pages.

    I have it and enjoyed it, but didn't get into exploring the pinning/expiration-day opportunities.
    It's definitely something that interests me and I'm following this thread with curiosity.

    Happy trading.

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    #22     Jan 4, 2021
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  3. caroy

    caroy

    @ffs1001 Many thanks for the book suggestion. I will give it a look. So far the trades are winner not for the pin but because they were put on before the sell off. Up .20 in both APPL and RIOT. See what the next few days bring.
     
    #23     Jan 4, 2021
  4. .sigma

    .sigma

    1/3/3?
     
    #24     Jan 4, 2021

  5. +1,-3,+3
     
    #25     Jan 4, 2021
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  6. taowave

    taowave

    Why not?? long a little gamma on the upside,makes money on a big jump up..

     
    #26     Jan 4, 2021
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  7. caroy

    caroy

    Was 1:3:2 a typo on my end.
     
    #27     Jan 4, 2021
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  8. .sigma

    .sigma

    Sounds like Tony Saliba style

    B16583F4-8ACC-4BA3-A56D-4EFD16C22708.jpeg
     
    #28     Jan 4, 2021
  9. caroy

    caroy

     
    #29     Jan 4, 2021
  10. caroy

    caroy

    In some ways yes. I haven't quite figured out my explosive position - love the sound of it. Best I've come up with is using calendars with a wide spread in VXX and rolling and collecting more premium to end up with a long position in vxx calls to offset my usual short theta array of IC and flies. Not really a calendar as I sell the strike with fewer DTE above the market and buy the other one below. Really a poor man's covered call I guess. Nice pops and profits on big down move days but figuring out how many of these to have on relative to the rest of my portfolio is a mystery. And then when VXX drags lower for months I feel like I've paid for insurance that expired although relatively cheaply in the calendars. So much to learn so much to try. Thanks for the Saliba piece. Might have to read his book as well.
     
    #30     Jan 4, 2021