Spreads versus Butterfly

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

  1. Now where have I heard that before ;)
     
    #41     Aug 16, 2024
    Adam777 likes this.
  2. taowave

    taowave

    Where is the stock trading and how many days till expiration in your proposed?

    It appears you are talking direction

    I'm guestimating the Fly has a delta apx < half of the Call,and if dead right on direction,the fly is a loser..

    Details please




     
    Last edited: Aug 16, 2024
    #42     Aug 16, 2024
  3. .sigma

    .sigma

    It was just a random example.

    Whats your opinion on buying outright calls/puts verses OTM flies for strictly directional bias?
     
    #43     Aug 18, 2024
  4. IMO for 0-5 DTE flies > verticals > singles > straddles > strangles
     
    #44     Aug 19, 2024
  5. What a difference a few days make! Gotta love the theta crush on flies.

    AUG23 16/17/18 Call Butterfly

    Pnl @ 16.93 (open) $80.69
    Pnl @ 16.93 in 3 days $730


    Look at the profit window @ expiry...all you have to do is pick where price will be a week from now? Why am I not doing these every week? It's like shooting fish in a barrel!

    $16.30 --> $100.00
    $16.40 --> $200.00
    $16.50 --> $300.00
    $16.60 --> $400.00
    $16.70 --> $500.00
    $16.80 --> $600.00
    $16.90 --> $700.00
    $17.00 --> $800.00
    $17.10 --> $700.00
    $17.20 --> $600.00
    $17.30 --> $500.00
    $17.40 --> $400.00
    $17.50 --> $300.00
    $17.60 --> $200.00
    $17.70 --> $100.00
     
    #45     Aug 20, 2024
    .sigma likes this.
  6. poopy

    poopy

    The Aug23 14/16/16.5 fly is trading at a 0.12 credit (as puts). It's good to 15.38.
     
    #46     Aug 20, 2024
    Adam777, .sigma and wxytrader like this.
  7. So I could straddle/strangle the fly
     
    #47     Aug 20, 2024
  8. poopy

    poopy

    forget it.
     
    #48     Aug 20, 2024
    Adam777 and taowave like this.
  9. taowave

    taowave

    Holy Fuck!!@!!

    Lol!!!!

     
    #49     Aug 20, 2024
  10. eh that sucks!

    upload_2024-8-20_7-51-4.png
     
    #50     Aug 20, 2024