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thanks!

When referring to the chance of having a heart attack, options are definitely riskier than stocks.

Q: What's the difference between a strangle and a straddle? A: A fly!

empirically it makes sense.. vol props up all the premiums, and the the P/L curve will look on average higher but flatter..

yep my own macro but nothing really fancy, just a bunch of nested for loops.. freezes my pc for 2-3 mins while calculating so obviously can't be used for live trading. From what I have seen relative to my market, most of the time 1-2-1 flies have better stats, but sometimes depending on the...

@ffs1001 he actually already posted the source in the previous page.. Charles Cottle. Basically the concept is that when you have a position like a butterfly/condor and their iron counterpart over a wide range, you can see it as a sum of smaller flies. You can compute all these flies and...

I have a vba macro that calculates all the possible fly combinations for a given option chain. I simply pick the one with the best profile in terms of expectancy..

Ah.. old good Charles Cottle.. actually I have that book on the kindle edition, but all the graphics/diagrams are f***ed up. Many thanks for reposting..

ok so here there are the two screenshots. I use optionscreator.com, as my brokerage simulator is Sh*t. before, 132 call fly: after, similar to a broken wing fly: clearly if the rally continues the position loses money, but very slowly due to the fact that the strike that I moved closer to...

@ironchef actually after a few dozens trials in the simulator I think I got a satisfactory solution to my conundrum. Brief recap of the scenario: my fly is a 231 call fly so there is one itm strike at twice the distance from the body compared to the outer strike. the structure went up mainly...

Just an experiment.

I play in the Chinese market, actually the rules here are a bit strange. No matter if your risk is defined or undefined, you still have the same margin requirement for shorts, so nothing changes for me by removing two longs. And I'm on an ETF. In any case the point of my question is exactly...

Let's suppose that I have a 1-3-2 call fly with still a lot of time to go for it (>40-50 DTE). The stock went up and now I'm in the situation where the longs went up quite a bit, and the short down almost by the same amount. I put this figure on because the skew in that moment looked...

Jeff Bishop told me not to pay attention to those charlatans..

Ha, and who's this John Full? For sure some academic who doesn't understand shit about trading, har har. Does he have a youtube channel, at least?

Thanks man!

Shorting a call without any other edge & hedge in place seems a dangerous proposition. open interest and volume in my opinion are meaningless until you reach a certain level of sophistication (and I haven't reached it yet). If you really really want to short a call, why not doing with a...

A simple question I asked became a 7 page thread, wow.. So, to put it in layman terms, P-C always holds because long underlying = short P + long C +extra fat ( divs, interest rates, cost of carry etc..). That extra fat will always be equal to the difference between the equation terms, so in a...

Tell this to Europe :D

I would say that there are a few misconceptions here. Been working/living in China for 10 years now, so I kind of know what I'm talking about. 1) Sure, policy makers don't need to go trough a legislative body to pass new regulations, but it doesn't mean that said regulations aren't met with...