Recent content by options_fanatic

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    Broken Wing Butterfly margin at IB

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    Broken Wing Butterfly margin at IB

    It won't make a difference, the margin requirement remains the same (3.5k).
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    Broken Wing Butterfly margin at IB

    Hello all, Has anyone traded BWB at IB? They don't have this structure in the list of standard strategies. You can build it as leg by leg trade, but when checking margin, they handle the credit spread as a standalone transaction. For example, trying to do SPX 2050/2025/1990 structure. The...
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    Trading credit spreads

    Never hold till expiration. The negative gamma risk is too high. This article has a good explanation: https://steadyoptions.com/articles/post/general/why-you-should-not-ignore-negative-gamma-r86
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    Double calendar question

    I have been trading calendars for years with great success. You need to know how to do it properly - those who say it's BS just don't know how to trade it.
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    explain how to make profits in option market

    Nice article why most retail investors lose money in the stock market: https://steadyoptions.com/articles/post/general/why-retail-investors-lose-money-in-the-stock-ma-r99
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    strategy for options portfolios

    Risk/reward is always related to probability of success. You cannot have good risk/reward AND high probability of success. You will have to decide which one is more important. As a rule of thumb: 1:1 risk/reward = 50% probability of success 1:4 risk/reward = 20% probability of success 4:1...
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    Credit Spread expiration

    There is always a tradeoff between gamma and theta. Short term trade will have higher positive theta (good) but higher negative gamma (not good). Any big move - and your trade suffers significant loss. If there is a morning gap, nothing you can do to control the risk.
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    Is this free money?

    No such thing as free money in the stock market.
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