Spreads versus Butterfly

Discussion in 'Options' started by wxytrader, Aug 7, 2024.

  1. Ok but what about the fact that the stock doesn't have extrinsic value at all, so if the price drops $2, the long call will not lose $2, and the short put will not lose $2....ohhhhhhhhhhhhhhhhhhhhhhhhhhhhh...wait...processing....the long call will lose <$2 because of extrinsic value, and the short put will lose <$2 because of extrinsic value...so they will be equal...and the stock will lose $2....
     
    Last edited: Aug 23, 2024
    #101     Aug 23, 2024
  2.  
    #102     Aug 23, 2024
  3. poopy

    poopy

    My last, ever.

    The difference between the call and the put (marked to the fwd) is mark - intrinsic.

    I can't block you so I am just going to stop replying to your gibberish.
     
    #103     Aug 23, 2024
    .sigma and wxytrader like this.

  4. upload_2024-8-23_9-30-6.png


    upload_2024-8-23_9-30-20.png


    upload_2024-8-23_9-30-36.png
     
    Last edited: Aug 23, 2024
    #104     Aug 23, 2024

  5. [​IMG]


    I guess they say a picture is worth a thousand words...but I will just mention that I was in the position a few days even before I posted the first chart.

    upload_2024-8-26_4-30-55.png
     
    Last edited: Aug 26, 2024
    #105     Aug 26, 2024
  6. So I had a break even of 19.75 so if I sold this morning I would have taken a loss of 19.75-18.47=$1920

    Instead I sold a call for AUG30 CALL for .93 and received $1395 bringing my break even down to $1880
    If the .38 level holds then into a triangle...otherwise triangle will likely form at the next level .50 or .618
    upload_2024-8-26_19-47-32.png
     
    Last edited: Aug 26, 2024
    #106     Aug 26, 2024
  7. Overnight

    Overnight

    World's worst lie, ever.
     
    #107     Aug 27, 2024

  8. OK well yesterday expecting this to triangle, I sold an AUG30 18 call @.95 so I am up $706.22. I was busy binge posting so I forgot that maybe I should have taken my profits...but I kind of want MAX profits. THIS is why I prefer selling options. If price retraces back up to 18.30 level I'm still up $413...if price stays flat another day I make $1058.31. :)



    upload_2024-8-27_17-12-26.png


    For all the TA folks out there who claim 20/20 is hindsight, I hope you see that I am drawing in triangles BEFORE they form...anybody can draw them after and play break outs.

    [​IMG]
     
    Last edited: Aug 27, 2024
    #108     Aug 27, 2024
  9. That was an easy $380! I knew price was going to retrace back up to the top of the triangle, so wanted to make some money with AUG30 17.50 CALLS. I still have my short AUG30 18 CALLS open letting the theta kick in. I probably left $200 on the table because I wasn't watching it. I don't use the phone apps so no alerts...but should have put a limit order nearer the top.


    upload_2024-8-29_9-51-15.png


    upload_2024-8-29_9-49-46.png

    It's worth mentioning that I've been making money off this triangle that most punters haven't even drawn in yet.
     
    Last edited: Aug 29, 2024
    #109     Aug 29, 2024
    beginner66 likes this.

  10. Well I played that perfectly. I was expecting price to bounce yesterday so I bought some calls and closed for a profit. I then waited for price to come back down to close my short calls for a profit...both trades combined pnl = $950. That would not have been attainable had I just held the short calls to expiry, as price is looking to finish itm...currently .30. I purchased the short calls @.69, so I would need price to finish @ 16.55 at expiry to profit $950...we'll see how it plays out. Currently the position would be worth $630
     
    Last edited: Aug 30, 2024
    #110     Aug 30, 2024