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I'm paying the $1 as well through tastyworks. And yes you point out a downside of trading flies is with the multiple legs it eats up profit. Paying $5 exercise fees per option is a pain as well. That's why ones that have gone max loss I usually exit a few pennies above to avoid a bigger hit...

When I go long a stock I always have a hard time deciding when to sell. Looking at the options chains in this one I see in the 156 DTE to the $7.50 call is trading for $0.20. If I buy the shares at say $1.36 my basis is now $1.16 and I can use the 156 day window as an opportunity for it to...

I like the long stock short the 187DE $7.50 covered calls against it. Nice wheel range.

There's no risk of early assignment and most of the financial futures are cash settled unlike the grains and softs. Yes on the defined risk. I partook in a small fund once that sold out of the money spreads based on the MACD and Moving average cross showing a reversal in trend. They would...

A quick thought as I dig into this. The 2:3:1 for a butterfly set up is going to cost more to initiate but have a fatter R/R. But I'm thinking a management tool is if a blow up and through occurs you could sell the vertical of another guts option and buy the far wing leaving you balanced with...

I'm liking you're thinking on this for the 2:3:1. Am going to look at some set ups with these today.

Another thought is to trade the /ES futures. Span margin on futures is not as capital intensive as the margin required to short the SPY. Depending on what you want to do it can be more capital efficient to trade the futures. For the same $12,000 in margin you could sell 2 of the ES 3400 puts...

Tuesday night update. Looking promising in DKNG, CHWY is chewing me up might have to sell a put spread below my high strikes recoup some to avoid full loss but will see what tomorrow brings. TLT is edging into the profit wing. VXX hedge hanging in there. Plan to sell one or two iron flies...

Adding a longer term fly this morning mainly as protection against a pull back in the markets in February. I carry some short put positions and a few equities I'm running the wheel on and some poor man covered calls. VXX 1:2:1 call fly at 16-24-32 strikes FEB 26 EXP for a debit of $0.99

I'm finding I favor more that 1:2:1 for longer butterfly plays 45 DTE type stuff. I can set up a larger profit window for the trade than the more weekly pinning plays. Have been looking at the VXX putting on 45 DTE call butterflies as a hedge against the put shorting part of my portfolio. For...

Enjoying your journal. Curious if you have a rule of thumb for when you favor which structure 1:2:1, 1:3:2, or 2:3:1 on the flies? Here you're saying lower IV for 2-3-1? Trying to figure the reasoning behind my own fly set ups.

If you buy 9 of the $1300 calls for the same price as the 1 lot $795 call and TSLA closes in 30 days at $2,000 a share you make $630,000. If you bought the 1 $795 call you'd be sitting on only $123,500. If TSLA under $795 all options worthless. If TSLA at $1300 is worthless but you 795 call...

And were off. Trades entered Monday January 11, 2021 1:3:2 Call Fly in CHWY 98-100-102 credit $0.17 1:2:1 Call Fly in DKNG 54-55-56 debit $0.10 1:2:1 Call Fly in TLT 152-154-156 debit $0.31

Off the phone with TastyWorks. They exited even though I clicked monitoring as the account could not have handled assignment. Shouldn't be a long term issue as I will be adding more funds and am using this account to test some ideas. Still frustrating. No free mug forgot to ask. Cheers.

Adding a bit to this strategy for weeklies. I'm going to add an Iron Fly trade or two every Wednesday towards the close to play a quick collapse the following trading day. Similar risk management rules no more than one percent on any trade. Will probably just look to do one or two different...

I believe they were technically adult actresses. But yes a man who struggled with his own rules.

Just remember with the hookers what you're really paying for is for them to leave. - Charlie Sheen

If you're doing the 1:3 ratio. How far out are you buying the wing to reduce the margin? Using a profit target or a delta target?

Yes good point. He writes much about the 1:3 ration spread as a strategy for the last couple of days of expiration.