Riskarb's combo to fly conversion journal

CME Feb 380 straddle at $33.30 and 35% vols. Adding to the list.

 

So Risk, in the Ceph example your position would end up as:

Short 2 Feb 75 call
Short 2 Feb 75 puts
Long 2 Feb 80 calls
Long 2 Feb 70 puts

 

I was planning to go long straddle on this one next week , lol , I better think twice now

 

My best value add is likely as a contrarian indicator, so you'll probably be wildly successful going long. I am short the 370/380 combo from 34.00 due to some vol-gains. I expect to see 2800vols on the report. I don't see the earnings-suprise risk associated with a GOOG.

 

right , no earnings surprise here , but they still will pump it to 45 vols (and high 20th on the morning after).
Anyway , I don't want to be on the other side of your trade

 

Mr. clueless here, does this mean you covered the 380 put and sold the 370 put?

 

No, sorry. Meaning I was alread short the 370/380 strangle before I posted the 380 straddle sale. I am not short the 380 straddle due to my concurrent 370/380 strangle position.

I was pricing the 380 straddle at $.20 > the bid for purposes of the straddle to fly journal.

 

I honestly have no idea what riskarb is talking about, but it sounds mighty impressive. Is it Arabic?

 

Riskarb,

Enjoy reading your posts. Thanks for the contributions.
Not to split hairs, though, but your initial short position is the straddle and not the combo, right?

just to clarify: Your initial position in the CEPH example is short 1 75 call and 1 75 put. You would be at risk on the straddle for a max of ten days. Then to complete the iron fly you would buy 1 80 call and 1 70 put hoping that your net position would be an iron fly for less than fair.

Am I getting you correctly?

 

What kind of Aristrottle are you when you do not understand greek ?