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Didnt mean to open a can of worms,was simply trying to say that I often find myself initiating a position with a simple fly,that inevitably turns into a 30 plus leg monster... Not sure what you are asking.Every pro platform supports Delta hedging . Are you referring to optimization regarding...

It's very common...

Im sure you have,perhaps without intent :) Its really not complcated and you can easily eyeball it and ballpark the bias.. You just have to hope that Mr Sticky Delta prevails,and that "bitch" Sticky Strike doesnt rear its ugly head....Massive Buzzkill when that happens:)

Also depends on how you are defining Delta hedging. Are you strictly referring to adjusting with the underlying or also including rolling/purchasing/selling of options.. If you are in a wide condor,you can adjust your short verts distance and effectively the Delta by Buying/Selling flys..

Of course there is a point.. But keep in mind there are different approaches to trading defined risk strategies... Some may risk 1 to make 3 and stop themselves when they are down 1... If it's a cheap fly/ calendar,you may opt to punt and let the spread go to your target... If I trade a fly...

If you are trading a portfolio of somewhat illiquid names that makes total sense.loosely speaking,if you have a system on a portfolio of 20 stocks where 10 go up 70 percent and 10 go down 70 percent,long options makes alot more sense than long stock.

Orats is the one I like the best and Matt's a good guy..Take the trial

Good thread..Would you add the last price to make things a bit easier.. I only trade structures similar to you if I believe I get skew edge/skew Delta.( sticky delta) Is your approach strictly directional??

If you are going to replace stock with options you need to do a bit of work..For starters,you should run a backtest on a portfolio of stocks given your parameters.You then should look at the distribution of returns,in particular MAE and drawdowns. Why?? Because you need to understand the return...

https://www.insidermonkey.com/

I am a broken record,but if you are serious about trading,run some simulations/ backtestss on a program like Orats..

Whatever you want it to be:)

Are you using optimizable psrameters??? If so,WFA is 9n order.. If not,shift your parameters and see what the results are vs your initial backtest

Do you remember the old Bell Motorcycle Helmet ad? If you have a 10 dollar head,buy a 10 dollar helmet. You really want to fund 10k traders???

Sounds like vol and skew exploded,as well as bid offer.

I always find it interesting how traders intuitively break down positions..You look at a 1x3x2 as a ratio spread and a backspread. I look at it as long 1 vertical and short two (higher/lower) vertical spreads. I tend to break it down so it's simple for me to know max risk and max reward without...

Im keeping it simple... Put the IBM 7/23 - 7/30 140 Call Calendar on for .34 .. Earnings on Monday..May look at downside diags before earnings are released..

It doesnt appear that you are running a vol book,so what brought this topic up?? Do you trade 3 vs 9/12 month calendars with the hope of systematically rolling for a credit?? Just curious..

Keeping it simple,if you have a time spread with greatly different durations,bare minimum you should know how the vols/ delta's "could" react in an adverse move... It's no different than being short skew delta,or at least being aware of the possibility...

Well said