------------------- May a true retarded (Bavarian) chime in here briefly? Please don't brutalize me, k? Atticus wrote: " Keep an eye on FB. " a) What is this in reference to? Doing this strategy on FB? b) R248; what is a 'kerb' stock? Again, I ask politely~~as options are without a doubt NOT my specialty, but I am curious. Good thread; good 'fight', good stuff, good stuff! peace hedvig
MTM <$86, $11 overnight gain on vol drop and obvious Monday's vol-mark. Gain of >$16 per PF from inception.
Atticus, You mentioned that the downside risk can be managed in worst case scenario by preferably being cash secured. How do you manage upside risk? With the underlying at some pre-determined delta? Thanks, Rajesh
Researcher, Any reason you chose the 1330 for the calendar? Earlier, you wrote that the 1330 was better than Atticus's 1345 calendar. Any reason why it was better? In retrsospect, sure the market dropped big on Thursday. Was it just a bet on direction? I must concede that I don't understand 95% of this thread.
You buy calendars to buy vol. You buy flies to sell vol. Flies will generally have a better R/R at best-case (pinning scenario) and under many deciles on vol. The "verticality" makes it so. It's a tangent beyond the scope of this thread, but.. I'll look at the 20-wide (ex. 10/30/50) fly vs. the calendar next Friday and compare the payoff to yesterday's close. I'll bet that the fly outperforms... and I am a fan of calendars. It's a play on the term-structure vs. a single-date.