.sigma's butterfly book

Discussion in 'Journals' started by .sigma, Apr 2, 2020.

  1. It is interesting how the mind works. Your characterization of "An entire thread.." was not fair and caused me to validate some of the I things I wrote and how much of my ideas I should talk about. This resulted in another "Ah ha" moment where I found a "Nexus" of various edges and a way to define current market conditions. I will be doing work to anticipate market conditions, not just price levels. This thread has given me two "Ah ha" moments. In this week alone. Thanks to .sigma and to you.

    I say, let's keep this thing going. It is threads like this that are one of the benefits of social media. For reference, reread the 1st page of your posts from 9 years ago, when you first started posting under your current nick.

    Besides, what where you doing reading this journal if not to learn or contribute?
     
    #81     Apr 11, 2020
    .sigma likes this.
  2. .sigma

    .sigma

    Yes @BeautifulStranger you've been an immense help in this thread. The goal is to build a foundation, and learn more than I knew previously, that's all.

    Yes butterflies are as old as mankind, and I'm sure the vets been trading them in the wombs, we get it. But for us who still would like to learn old concepts, and maybe propose some new ideas, this is what forums were created to do. So lets build, be positive, don't buy the fear the media sells, and $tudy.
     
    #82     Apr 11, 2020
    BeautifulStranger likes this.
  3. .sigma

    .sigma

    AAPL 30.PNG

    My fly is those red strips, the 235/45/55. AAPL is currently at a resistance no buyer zone, which it will most likey gap above and fill, or gap down today, which is what I'm hoping obviously, I'll see how the week plays out. I have some more flies to discuss in a bit!

    Spooz are down, looking for a slight move down this week as I'm slightly neg deltaz on my put flies

    aapl rsk.PNG aapl pnl.PNG
    This was a pure "lotto" play, I should've gone with a tightly slad higher strike selection.
     
    #83     Apr 13, 2020
    BeautifulStranger likes this.
  4. .sigma

    .sigma

    AAPL up another 5 bucks today, which equated to ($45.91) for the day and -42 on the fly overall.

    Currently:
    413PNL.PNG

    I'll outline more trades I'm looking to put on soon!
     
    #84     Apr 14, 2020
  5. .sigma

    .sigma

    E59EF402-31AB-4035-8FEB-B9394243D2F1.jpeg
     
    #85     Apr 15, 2020
  6. .sigma

    .sigma

    DD958EEC-57EA-4170-B979-D225D8DA68E0.jpeg

    Does anyone know what symbol that is ^^^^ it looks like a lower case sigma, and looks like a snake. But I’ve seen many a derivatives formulae and never knew this variable.
     
    #86     Apr 15, 2020
  7. .sigma

    .sigma

    Earnings season has begun! I’ll be speculating on a few plays if the set up seems juicy!

    $JPM started the season off.. 2.19(est)/0.78(actual) yet stayed within the expected move.

    these are the types of set ups I like. So I’ll be detailing potential earnings trades.

    I passed on UNH, anybody in this one? 9C60EAF3-A295-4F03-A660-F1FC3E1CE531.jpeg
     
    #87     Apr 15, 2020
  8. .sigma

    .sigma

    Interesting that one of the names for 132 flies is the “Christmas” fly.. which I don’t really like. I have my own Ebonics for option strategies anyway, but I call 132/231’s the “swallowtail” fly. Which is a name for a gorgeous butterfly that is furry on its body lol 699E1CBC-1725-4C57-8562-0FD1E0FBE8D9.jpeg
     
    #88     Apr 15, 2020
  9. .sigma

    .sigma

    Not trading as much as I usually do, this market is too wild, and I'm more of a delta neutrality kinda guy.

    Expected Move Butterflies.PNG Earnings is something i'll utilize, something to note which is odd, is for this season of earnings, theres not that many companies reporting and most companies are reporting before the market opens, usually its after the market closes. Just something to note. something I want to try out is playing expected move flies. Whatever the implied move, MMM, expected move is I'll position a fly either on both sides of the market, or just on top or bottom, depending if I'm bullish/bearing on the company based off technical/fundamentals, I'll also be looking at the microstructure to see where the blue chippers are clipping coupons.
     
    #89     Apr 15, 2020
  10. .sigma

    .sigma

    #90     Apr 16, 2020