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It's bad because it lacks discipline. You enter a trade for a reason. You establish a max loss and exit strategy before you enter. That trade goes against you. Now you enter the world of mental masturbation telling yourself 100 reasons why it is still a good trade (none of those reasons were why...

I think it is how FSU says. Only on a double take did I realize you were saying it wasn't. The original structure would be odd. The B-Fly would be normal.

"High IQ people are not lazy" Many are.

Looks a bit like something I would do. Just mine would have fewer 115's and more 125's. I personally do not like the "what is this person trying to do as it ignores what they might have on, but this is clearly a very bullish trade. You want the market higher by a lot, and for that to happen...

"The system essentially tries to mitigate risk by reacting to the price movement after entering a position." "in order to lose in this system, several series of price movements have to move against you instead of one,..." That first sentence raises my eyebrow. The second doesn't sound...

"there are not many idiots to buy at highs" How 'bout smart people? I can't imagine how many times I must have bought the high or sold the low of the day, and short the bottom and long the top, that was pretty much always.

Correlation is a four letter word. In regards to trading, no other word scares me more.

You are currently net short one put. To cover that risk, you somehow need to get net long one put. Maybe try some put 1*2. Graphing it is easy and you can see if that works for you. Welcome to the world of options, where there is never one better than the other, but only choices between...

Steve, Yes, You are thinking correctly, and that would be a fine structure for what you are attempting to capture. My criticism would be around the fact you are trying to capture something based on your assumption of volatility and that you assume your wisdom is > the wisdom of the people...

"So my question for those who make their living trading options - in your opinion, is this a good options trade?" I'll let you know Aug 3rd.

Unfortunately, options are the king of all financial products for the "Ah-ha" moment. No matter how well you think you understand things, until you see it, you don't. If I had to pick the one thing that advanced my understanding more than anything else... I would ask my mentor questions almost...

I remember on one of the exchanges I traded, every few weeks or so, several futures guys would pop 'shrooms about a half hour before the bell, and trade the close while they were tripping balls.

If someone were to write a book explaining in great detail why the Fed doesn't do 1/10th of what they project themselves as doing. That the CB is little more than a giant dog and pony show, run by people considerably less intelligent and capable than everyone perceives. Moreover, were that book...

I have assigned people on options that expired OTM. It is rare anyone does that, so they need to be EXTREMELY close. Mathematically speaking, they should never be exercised OTM - why exercise a 20 strike to get short @20 if there is simultaneously a 20.10 bid which would obviously be the more...

The detailed answer would be massive. So go with "just varies on a case by case basis" and add in, always subject to change. The more you look at options from the perspective of "always subject to change," the better off you will be.

Thanks. I was a senior officer and the head of trading at what the OP would refer to as a supermajor, with a specialization in complex synthetic derivative structuring. Maybe you misread his post. He said he had no math/econ and analyst is out. I agree. Furthermore none of my desks had analysts...

Man Destriero, you went deep. I just saw he was wearing a tie and knew he couldn't be a trader. Probably a stock photo. (Just joking of course, I know upstairs traders wear ties. I had a rack full of Hermes clip-ons...)

To trade NG???? Absolutely unnecessary. With all due respect, that is terrible advice.

My personal recommendation is to go for a scheduling position. That will be the easiest route for entry. Getting onto a trading desk from there will be a bit tricky though. Will require you befriend someone on a desk once you are working there and hope they bring you on to clerk for them. Not...

Well some Italian dude once said "there is no greater mastery than mastery of oneself." (Although he probably said it in Italian and I think the second mastery might have been a bad translation leaving out the suffix 'batery') Short of that - Simple solution. You bought X vol. Vol is now X+8 so...