Riskarb's combo to fly conversion journal

Discussion in 'Journals' started by riskarb, Jan 12, 2006.

  1. Agree, probably see 55% at the open, continued vol-contango. Mar will trade at least 500basis under Febs.
     
    #271     Feb 2, 2006
  2. I'd say we'll see a 35-40% or so haircut in IV's come tomorrow. with the stock hovering around 123 and the weekend around the corner, shouldn't you be collecting at least $6-$8 sometime in the afternoon??
     
    #272     Feb 2, 2006
  3. Now your entire book is doomed.
     
    #273     Feb 2, 2006
  4. LOL :D
     
    #274     Feb 2, 2006
  5. You are losing me and I know this is non-Greek English!

    At vol of 60% and s= $120, the straddle will be worth $18.00 or so. I will look at the wings to see if it is worth converting. I assume the call wings would get crushed but the puts will still have some duckets in em.

    EDIT: Watching repeat of Cramer, he is talking to an analyst about ISRG! 1 Line mention and nothing really, he moved on to another stock lol. He is useless.


     
    #275     Feb 2, 2006
  6. ISRG

    Sold Feb $130 Straddle @ $21.70 (104% vol)

    Bought 115/145 Strangle @ $4.30 (~63% vols)

    Iron Fly (115/130/145) legged into for net credit of $2.40.


     
    #276     Feb 3, 2006
    .sigma likes this.
  7. why ???
     
    #277     Feb 3, 2006
  8. Uh oh :D

     
    #278     Feb 3, 2006
  9. Because I want to get a better feel for these positions. I jumped out of the OIH and ACL positions prematurely. If I really want to understand this strategy and determine if I want to do regular positions I want to test the waters. Since the ISRG has a guaranteed profit already I converted and will let it ride the next two weeks.

    I do not want to get into the habit of just selling naked straddles and covering.

     
    #279     Feb 3, 2006
  10. got it , thanks
     
    #280     Feb 3, 2006