Spreads versus Butterfly

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

  1. poopy

    poopy

    My MARA ten-lot cost me $7 round-trip. $143 gainer net of fees.
     
    #71     Aug 21, 2024
    wxytrader likes this.
  2. poopy

    poopy

    Paying only exchange fees opens you up to the marginal play not available at retail rates with SCHW, E*Trade, Fido, etc.
     
    #72     Aug 21, 2024
    nbbo likes this.
  3. It looks like I was off by a couple days...should have done a 17/18/19. Anyway I'd rather just take premium and be done with the trade. :)

    I think if I have over 100k then it drops to .15...so there's that.
     
    #73     Aug 21, 2024
  4. poopy

    poopy


    Modality, dude. You're long MARA at the open and end up short at the close. What good is the signal if you end up violating it via your delta-position?
     
    #74     Aug 21, 2024
  5. Well I WANTED to do a call ratio spread, so it would have maxed out at $702 long delta (.499), but my banks fees are ridiculous, so I went with the fly on IBKR

    So you collected premium on the fly not a debit...
     
    Last edited: Aug 21, 2024
    #75     Aug 21, 2024
  6. poopy

    poopy


    a ratio spread is three vs four contracts. shares were mid 16s so you were planning on a 16/17 or 17/18? Neither made money...
     
    #76     Aug 21, 2024
  7. poopy

    poopy

    The 14/16/16.5 fly traded at a credit of 0.2 yesterday. My fill was sht. Price the asym-fly into the natural which gives you the debit risk and fill via the synthetic as it's at worst only one ITM leg. The synthetic gives you the credit tail value. i run them at x (zero outlay) or credits. In index you can run them with small debit tails (into your bias) as the drift is so large yet still generally remain riskless into one tail.

    My fly was a 1.38 debit as calls and a 0.12 credit as puts.
     
    Last edited: Aug 21, 2024
    #77     Aug 21, 2024
    .sigma likes this.
  8. The ratio spread was going to be 16/22 or something (Stock repair strategy).

    OK so modality... I should have taken a credit on the put fly, instead of a debit on the call fly.

    Yesterday I could have picked up a 14/16/16.5 put fly for a .33 credit, and today it would be worth .20 so I have profited .13 ?

    I got $330 to open it, and closed it for $200.
     
    #78     Aug 21, 2024
  9. Yes I see now...and on the down side do the opposite...buy call flies for a credit...but the risk is substantially higher.

    upload_2024-8-21_14-37-55.png
     
    Last edited: Aug 21, 2024
    #79     Aug 21, 2024
  10. poopy

    poopy


    Well it was good to 15.38 and peaked terminally at 16. i made more than you did and i earned the credit in a day. I would never trade MARA but wanted to see if I could receive reasonable fills.
     
    #80     Aug 21, 2024
    .sigma and wxytrader like this.