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That took an uncomfortably long number of seconds before I got it. Check, the wings are a long strangle. As soon as I subtract the (narrower) short strangle from the IC, that is - of course, duh - what it becomes. It had become cemented in my brain as two verticals, but that's just one way of...

Thanks for the response. I agree with the general principles - pretty much textbook stuff - but don't believe that there's a direct correlation to any tradeable strategy (if there was, it would have been arbitraged away by the sharp folks with the deep pockets.)

@Stockolio, if I wanted to troll you, you'd already be screaming in pain. But since you've made a ridiculous spectacle of yourself, and everyone is already laughing at you, I have no desire to do so (ignoring the fact that I have zero interest in trolling, unlike you - it's obviously at the top...

Damn. I actually got almost all of that. I must be getting smarter from associating with you folks. :) So... OK, he's reshaping his original risk profile to reduce the local delta position, and paying for it in increased risk elsewhere (and the overall risk increases because, well, ain't no...

That's actually really interesting - I've never seen anyone make that distinction. But it's pleasantly encouraging. :) I'll be honest: it's a personal bent much more than some sort of a planned strategy (although there's a fair amount of that, too.) I've been an independent for most of my life...

I'm not being cynical when I ask - I'm genuinely curious - but is there any reason to think that you know more than the average bear, or are less likely to be wrong? Lots of people have written lots of books, but those who have an actual grip on market direction trade it and make fortunes rather...

Ah - the light dawns. Thank you very much, @Magic. To me, 'stop' meant a stop-market order - and using one just didn't make sense if I was paying for wings. Again, all open to correction, but the two seem mutually exclusive. As context: I'm fairly new to options and active investment, but due...

So your answer is simply to close for a loss any trade that doesn't go according to plan. Well, it's a viewpoint. I'm not going to discard it immediately just because I don't agree with it - that would be stupid, because I'm exploring possibilities right now - but it seems to completely ignore...

Just saw this, right after my previous reply. Well, I did ask for perspective - can't complain if it's one that basically knocks my previous concepts into the trash bin, especially from a professional. This, of course, brings up more questions: are you saying that shorting wingspreads is such a...

IIRC, his concern was that SPX kept rallying and pushing the call side (I don't remember all that much about this trade, and can't find the video I snipped it from.) I'd have rolled up the put side to recenter - that's all I know to do in a situation like this - so this maneuver with the flies...

I can't think of any adjustment that doesn't increase your risk once you're in a losing trade (other than simply taking a loss - I suppose you could look at that as reducing exposure...) IME, moving the tested side locks in your loss, since it would be done at a debit; rolling the opposite side...

It's one of a set of risk decisions that should be made well ahead of time and re-evaluated on a regular basis - say, quarterly. These are often based on risk of ruin calculations as well as personal risk tolerance. Generally, you want to define the maximum percentage you're willing to risk 1)...

I like this @Amahrix guy. :) There's an old joke about a man who, just for fun, decided to see if he could convince everyone in his town that someone had struck oil in hell. He was so convincing that, one after another, all the folks packed up their bags and took off to see if they could cash...

I went through those when I got started in options, as well as all the relevant material at TastyWorks. I agree, they're quite good - especially if you're not at all familiar with adjustments. What I'm looking for is a bit outside that scope; e.g., there's a video on TW where Mike Butler...

Could you expand a bit on how this is relevant to (what seems to me to be) a purely tactical process of trade adjustment? I'm not connecting the two.

I just recently started learning about futures; no practical experience with them, though. My current experience is about 90% options/10% stock, but I want to get thoroughly familiar with all the different asset classes as time goes on. I actually don't see the techniques that I'm discussing as...

In reading over the threads here, and having seen it elsewhere, I've become very interested in the subject of trade adjustments. Some people seem to be absolute virtuosos with them - an iron fly bought here, a condor sold there, and - voila! - the 16-legged Lovecraftian monster of a strategy...

I'm relieved. Given how much conviction you were expressing, and the 30-day ATM puts at 0.25 or so, I'd have put you down for at least 100,000 of them. I thought we'd all have to jump in and beg you not to sell a kidney. Say... is this forum an extension of r/wallstreetbets, by any chance...

Wouldn't you, if you were long the company? Not expecting it from those whose bread is buttered on that side would be naive in the extreme. I've actually scanned the report; interesting if true. So are you buying puts, or going the synthetic route? :cool:

Meanwhile, in other "news": "Chief Executive Officer Larry Culp labeled the analysis “market manipulation -- pure and simple.” I love the smell of damage control in the morning. https://www.bloomberg.com/news/articles/2019-08-16/ge-rout-ambushes-hedge-funds-after-second-quarter-buying-spree