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Pondering a new set-up Have spent the last couple of weeks reading some option books by Sinclair, Saliba, and Augen. Have been thinking about strategies for a put or call condor. Essentially choosing the condor over the fly you are flattening the profit tent a bit but widening it. PoP goes...

Week 6 Update Final Tally Entered following butterflies today still open BLNK 1:3:2 call 45-50-52.5 @ 1.54 exit @ 2.05 = +0.51 XPEV 1:3:2 call 40-45-47.5 @ 1.20 exit @ 1.80 = +0.60 SPWR 1:2:1 call 37-40-43 @ 1.14 exit @ 1.92 = + 0.88 FUBO 1:2:1 call 46-50-54 @ 0.43 exit @ .02 = -0.41 VXX 1:2:1...

Week 6 Update Entered following butterflies today still open BLNK 1:3:2 call 45-50-52.5 @ 1.54 XPEV 1:3:2 call 40-45-47.5 @ 1.20 SPWR 1:2:1 call 37-40-43 @ 1.14 FUBO 1:2:1 call 46-50-54 @ 0.43 VXX 1:2:1 call 15-18-21 @ 0.85 Traded following straddles yesterday in ES expiration in and out...

Best fool proof way to sell options is to really leverage up with commodity options. Sell ATM calls on natty gas on January 1st and ATM FCOJ calls same time. Really can't lose. Ask Cordier and Mortimer and Randolph Duke about it.

Example today in /ES playing the straddle in the options that are expiring I had two nice swings and picked up a couple hundred bucks. When it is expiration day the gamma in the position is the equivalent of being long / short the futures for a much cheaper price than the usual SPAN margin...

well said.

When I was 28 I had been trading on the side having spent my youth around the market. My father made his living trading grain futures off the floor for large grain houses and I had a great education in options clerking for brokers and market makers aged 16 - 22 summers, breaks, and for a year...

Curious as to fly set ups in terms of R/R profit tent. I've been gravitating towards ones that have above a 3:1 pay out. Usually these have to be somewhat directional but I find if IV is high enough they can be done with the first leg in the money.

Agreed if it doesn't move you lose. I've been trading a strategy on expiration day only of going long the straddle after the opening volatility ends around 10 EST. Usually is starts to trend one way at which point I close the losing side and let the winning side run. Granted it could...

Week 6 Update Sold Iron Fly RIOT 55-60-65 @ $4.23

If you plan to roll i like the diagonal set up better. Will usually cost more in buying power to set up.

arigato mr. roboto

presuming it would have been a diagonal set up with the shorter dated strike higher than the longer dated one.

Theoretically if it hits 405 your overall trade should be profitable anyway as you'd be making more on the long option at the 400 strike so you could take profits on the entire trade and then just reestablish a new position.

If it goes up but doesn't reach your strike just let it expire or buy it in cheap under $0.05 and sell another one further out. Say your initial position is short a 7 DTE SPY 405 call and long a 90 DTE SPY 405 call. At expiration or before buy in the short call and sell a new one further...

What you're describing is known as a calendar spread if they are the same strike and different months if the strikes are different it is a diagonal spread. The idea of continuing rolling the front month is called a campaign calendar strategy as ideally you're left with a free paid for long...

Interesting post and style. I think what you'll find is experienced option traders trade a wide array of styles. Some specialize in income trades with ICs as a monthly write. Some run the wheel on the index. Some sell cash covered puts. I've gravitated towards trading weeklies with...

You're doing it wrong. Off the small of the back or breasts.

Take out the space between worth and less and you'll have the value of a deep OTM option expiring ATM. = worthless

But when you nail one it's pretty good payout. Played the GME 55-50-45 put fly this week in at $1.50 and out at $3.50. Saved my week for the most part.