Exactly....someone just like GWB sitting in the back row of a Diffy Q class somewhere designed this unwieldy beast. Nice trade BTW
Risk, When opening a time fly do you generally prefer to put the straddle on first and wait for the right timing on the strangle?
Long delta risk-reversal: Short 50 SPX Jun 1250p Long 50 SPX Jun 1280c SPX:1261 ES: 1264 50 x ($1.70) to the sell Edit: The intent is "sell" the position [market] at a debit on a rally. The position is long the market at a $-credit.
Yes, as any directional or vol forecast is based upon daily-bar analysis -- I don't want to hold the wings too long w/o converting. I will buy the deferred wings as the opener if I am predicting a rise in vol, or a lower index print.
What is the reversal part of the trade if you do not mind me asking. It looks like a long call financed by the sale of a naked put. Is there an expected follow up move or adjustment?
I think so too....I just took in some ES here too. Going light right now though. It may be a Monday event. I'm betting it's within the two sessions. I'd love to see a knarly gap Mon morning. That would be a gift.