Search results

I'm afraid I don't know more - all my knowledge (and there isn't much, I'm afraid) has been recorded in this thread (and, like you, I visit scott kramer's forum at optionetics). As I said at the start of this thread, I'm still learning and tinkering with this particular strategy and was hoping...

Thanks, I appreciate your input. Best daddy's boy

Thanks for your reply Bitstream. According to your info, all is sweet and all one need do is wait til expiry and the long puts will be autoexercised, right? I'll still have to check this with my broker, it all sounds a little strange. daddy's boy

That's a nice summary MoMoney. Daddy's boy

Bring the long far otm strike closer to the body. You need to keep in mind that the BWB risk graph shows the risk at expiry and may be a bit misleading since it is model dependent and option models are far from perfect. Best daddy's boy

I tend to agree with Don. If you're long the put and the underlying is not trading (for whatever reason), then the only way you could exercise it is if you already own the underlying or sell the put to someone who owns the underlying. Daddy's boy

This is how I see the value of backtesting. Advantages - 1)gives you the confidence to pull the trigger. 2)reinforces a systematic approach to trading Disadvantages - 1)makes you think you've got a systen that works and can thus lull you into a false sense of confidence...

It's a directional play which you can play both ways - place a call and a put bwb at the same time (like a strangle) - which should work out well if you can get a credit for both. But beware of the strike selection. As I said, the strike selection is absolutely critical and can turn a low risk...

bwb stands for broken wing buterfly. As jj90 said, the far otm wing leg is bought to reduce margin, iow there's asymmetrical distance between strikes. Generally used for indices. On the P/L graph the trade looks uglier than it really is. It can be placed for a credit and in essence is a...

As mte said, it's a sure thing if you can leg it for those credits. Have you actually tried placing this order as an iron condor and not two separate spreads? If so, what was the bid/ask? daddy's boy

Pleased to hear that since I just opened an account with TOS. daddy's boy

Hi Eliot I've read the book a number of times and yes, the strategy has worked for me so far on the trades I have placed (only 6 ), keeping in mind I placed some of them for a credit and either kept the credit or made more. The ones I placed for a small debit made a good profit or expired for...

Looks like a very good trade from the point of view of timing - the underlying is right at your short strike. You can close out the whole cal for about 70% of max profit now or you can roll your short to sept for a credit of $4.3, reducing your risk to $0.8. Be aware though that iv is pretty...

Hi stoxtrader To add to mte's answer. Your formula is correct but you need to know what values to plug in. Once you know your risk then you know your breakeven. So if your risk is 2.45 then your breakeven will be: long strike plus risk i.e. 45+2.45. You can reduce your risk a little by selling...

I'd like to make some suggestions but don't have enough information. Is your overall position profitable? What were your exit criteria before you entered the trade? What's your outlook? daddy's boy

This is daddy'sboy's daddy. :mad: .Daddy'sboy has been sent to his room and won't be allowed out until he sees the error of his ways. Meanwhile he sends his best wishes to all his friends here on ET (except Arnie, who apparently has been very naughty and refuses to learn the "greeks" and has...

You're right - cheap shot on my part. Sorry Daddy's boy

I know volatiltiy isn't a greek nor is time decay nor is price of underlying, but vega/theta/delta/gamma are and if a trader understands the former then he/she would understand the latter. And you're right, mmt, I have yet again missed the embedded sarcasm, lol - my bad :p. Good Lord, this post...

No problem. Best Daddy's boy

Don't worry, I will. And I'm not "talking down" to anyone, simply offering an example to support my point of view. Not everyone here has an understanding of options the way you do. It might pay for you to consider some of the others who come here to learn - not all are rocket scientists. Oh...