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No worries,I had to ask the OP for a breakdown to understand his terminology. I should have mentioned to you it was reward to risk:)

I asked the OP to clarify and 1:4 is the Reward to Risk,not the other way around..You have it backwards...understandably so,which is why I asked. More to the point,if you look at his position and see what he's doing,you would know that risk reward of 1:4/1:9 is not possible.Its reward to...

How could risking 9 to make 1 be more advantageous than risking 8 to make 2??? Are you guys delta hedging this shit,rolling or punting and praying?

If i read you correctly,when you say 1:4,that means you take in .20 and can lose .80? If so,its the same risk/reward as buying 13 one point flys(stacked) for .80 with a max profit of .20....Dont love it

To the OP,would you please show the trade strikes that went against you..I am very familiar with IC's,but the descriptive terms thrown around are "new" to me...When you say a 10d IC,does that mean each short leg has a delta of 10?? And the 1:9 you reference is the R/R ratio,selling a 10 point IC...

Trading hasn't changed,but my brokers will... I'll let you know as soon as I drop paying 6 bucks per fly at IB

I quickly took a look and intentionally did not hedge the entire dividend as you would open up a different can of worms as you pointed out..The wider the call spread,the more of the dividend at risk..Im thinking the short strike needs to be 304/305 or higher if you were long the 300...

I'm demoing TOS and found the interface a bit clunky compared to IB..That Control R method is kind of a pain in the ass..

Assuming you are short straddles/long Flys,you should ask yourself why you are delta hedging. If you run a short vol/gamma book one is obviously delta hedging so the 2 standard + move doesnt send you the way of the dinosaur. The other reason is to hopefully extract the differential between...

Ameritrade is .65 all in..Its IB who seems to be non negotiable. More often than not I am paying 1.50 per contract over at IB

Hey Sigma,pretty sure you know that an IC is basically a bunch of butterflys stacked together.. may I ask which broker you trade with?? I am trading with IB and it seems like I wind up paying about 6 bucks for 4 legged spreads(1.50 per contract).. TOS would charge me 2.60 for the same...

well,you can teach an old dog new tricks..Well done my friend!! I have been trading reversals and conversions since the 80's,and i was always aware of the implied dividend risk,(looked at it as a spread/fixed amount I was either long or short)but never once looked at the Delta.. If I was buying...

What leads you to believe that you "have more than a 1 delta" with a synthetic long?? Think about how you would hedge a synthetic long.Are you suggesting you would short more than 100 shares against your combo? I think not You should only exercise your long call if the dividend > short put +...

Of course there is a breakdown..Im assuming you havent looked at a balance sheet.. There are Current Assets and Non Current Assets,Current Liabilities and Non Current.And then there is Equity.. Property would go under Non Current asset,cash being the most liquid asset would beunder Current...

Can anyone tell me what the all in commision plus fees cost is over at TD?? They tell me it is .65 per contract regardless if I provide liquidity or not.IB charges me 1.50 per contract more often than not...Trading butterflys for 6 bucks isnt much fun..Are there ant real advantages to stick...

Great post WZ!! I dread being long gamma for the very reasons you brought up..Seems like every adjustment I make is wrong... I am a short gamma guy,but long the death insurance...

You said a couple of head scratchers,but before I address them I'm like to know if you are always long gamma,how you chose that path and what your approach is as far as making adjustments.Specifically,is it somewhat systematised or Gut feel when it comes to adjusting delta..

Why thank you...Puts are a funny beast..I have friends who are really successful real estate brokers in the Hamptons( not a measure of intelligence),and when I attempt to explain Puts and the market,their eyes start to roll back in their head with steam coming out of their ears... In their...

Buying a put gives you the right,but not the obligation to sell the underlying asset at a predetermined price( strike price).. It's an insurance contract,but unlike insurance,there is a liquid market for the contracts.. Make believe you have a 1 million dollar house in California and are...

And you need to adjust your meds