geez haven't you learned that "Happy New Year" is the new FU! I've decided to use it the rest of the year when I'm PO'ed
I just came across this thread. Wow! Anybody has any update on the strategy after 4 years? And even if there is no update, this thread needs to be read by many others like me who might have missed it in the recent years - so thumbs up, and bump up!
What a pleasure Doctor to see a reply from you within minutes! From my understanding of the original post, the position will benefit even if the underlying moves down. The strategy you posted (the PDF) seems to benefit from t the upside while it will have (although limited but) loss. I don't think you might have missed this observation, so what am I missing here? Thanks again,
Sorry, Can you repost the original post? It must have been a while back. To benefit to the downside with the SlingshotHedge, one would need to buy twice as many puts making it a Double Slingshot or Double Back Spread or PowerButterfly. There is no magic to the position. It simply behaves like a long (wings) butterfly playing for stability, along with a (hopefully cheap) strangle in the event of a big move.
Shameless marketing on ET. There is no such thing as secret strategy in options business. What is secret is your ability how you can market and sell something in such a competitive field.
I was skeptical at first, but I did send in my $39.95. In addition to what I received there was this bonus: How Selling Puts Can Guarantee a Monthly Income. But wait! That was not all, there was also this double bonus: A New Wringle on Mav's Old Wrangle. Thank heaven there was a money-back warranty!
omg omg, you are retarded (whoever your caretaker is must intervene) and not putting us on. you may even be dangerous. poor mav must be shaking the last hairs out of his head.
Wait, wait guys. Don't stop at the first post. There is no marketing here. There is no "secret" strategy to be sold here. If you go through some posts you will see the strategy is no secret, it's a butterfly with a wrangle. It was posted a challenge to idnetify a strategy (not to sell some "secret"), it was just to muse and make ET members think. Here is what is said on page 8, ---------------- 11-12-03 06:10 PM -------------------------------------------------------------------------------- Quote from tikipoki: Indeed great thread how about this boy: Pregnant butterfly in Nov: +2 call/put @ 90 -4 call/put @ 100 +2 call/put @110 Ratio'd spread in Apr: +2 put @ 95 -1 put @ 100 -1 call @ 100 +2 call @ 105 eh Tiki -------------------------------------------------------------------------------- Tiki, I am going to declare you the winner! Although I didn't even think of using the butterfly strikes so wide although you could do that on the front month. Basically what I had was a butterfly on the front month which would be done for a credit. +1 put @ 95 -1 call @ 100 -1 put @ 100 +1 call @ 105 This gives you your typical butterfly that will carry positive theta at the 100 strike and around it while also limiting your losses to the outer strikes. So with the butterfly would want the stock to sit still and not move which in and of itself is a good strategy for many. So then we add a WRANGLE!!!!! That's right someone mentioned this earlier on the back month which is also a form of a backspread. However, we sell the 100 strikes yet again to keep our credit. So.... +2 put @ 95 -1 put @ 100 -1 call @ 100 +2 calls @ 105 Long Wrangle! What this does is it's basically a backspread that will give us long vega and long gamma exposure should the stock take off or collapse. So when you put the spread together, you start off delta neutral, theta positive, and no vega exposure. You will be earning time premium and hope that the stock just sits there. However if the stock starts to move, you will still be making money during the front month no matter what. If the stock really moves hard then the position will turn into a long gamma, long vega position in which your theta will go negative. However you can also let your deltas run or you can gamma scalp them. After the front month butterfly expires, you will be losing money if the stock sits still and stops moving so you can then put on another butterfly. At expiration on the back month you will have a range where you will lose money after only a moderate move in the stock. But if the stock either sits still or breaks one way or the other you have unlimited profits. We have the best of both worlds here, a credit spread that earns premium as long as the stock sits still and doesn't move and if it does move we then have a long gamma long vega position that could make us unlimited profits. Hence a very very versatile strategy. If you put enough of these on, you could really spread your risk out. Of course you can always alter the strikes to change your profit range. By widening the strikes on the front month butterfly like Tiki did you reduce your profits slightly but increase your odds of making money during the front month. Thank you for everyone who participated. I hope everyone here learned something. I think this is ET at it's best. Hopefully we can continue this option dialogue on many other option threads. Again, congratulations to Tiki! Give yourself a cookie. LOL. ----------------------------