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guys thank you so much!

Great point, thanks Sailor

Hello everyone! I am wondering if anyone could recommend a good pattern recognition software to a novice? Automated alerts about stuff like "hey you got a bull flag forming on XYZ", "reverse head and shoulders on ABC spotted", "YYY is teetering with a fib retracement level at price X"...

Thanks Atikon! Could you please elaborate on combining CFDs with the skew play? Is it some kind of arbitrage (like, sell naked put on high skew but if the underlying goes down you own a CFD on the underlying with which you collect the difference to cover the gap between the naked put strike and...

Atikon, thanks again! By "don't do calendars with long under 180 days because of theta" do you mean short calendars (buy front/sell back) where theta decay of the long outpaces the short? what about the IV coming in if you sell a calendar at IV higher than "normal" (short calendars are vega...

cool, thanks for the tip Atikon!!! will you find a minute to critique my stuff at at https://bit.ly/3dhb6LH also, if possible?

It's also up on Google Drive at https://bit.ly/3dhb6LH - if anyone wants to leave a comment in the document directly? thanks again

How's everyone today! Fellow traders, I am only making my first steps in the wondrous world of multi-leg option trading and - based on all I read + some real life and paper trading experience on thinkorswim + loads of tastytrade videos and so on, I have compiled something of a cheat sheet for...

Guys many thanks for your responses! As I'm reading through Chen's and Sebastian's "The Option Trader's Hedge Fund" (pages 113-114) they also note that it's important to look at difference in iVol between back and front month in a short calendar. I set mine up for ADBE when the 15 delta put...

Hello guys, I am quite new to calendar spreads, so I apologize for a somewhat novice question. In understand that the core things to look at in setting up a short calendar spread is an "abnormal" difference in iVol between front and back month (in hope that the gap will "squeeze" back to...

But wouldn't that mean that your wider strike longs (your original long strangle) will also go down in price by a lot, so sell to close them would generate less than what you need to buy to open the narrower wings, so it'll be a net debit transaction eating up your profit from the time decay of...

that's right, that's what Chen and Sebastian put down in that book on pages 106 and 107 as examples (except it was the ATM call that was 49.3 and the ATM put was -50.6 not vice versa, so the actual delta equates to -5.8) and then they say "with a delta of -28 you buy a call to flatten the delta"...

So that means that the long put will have a much higher IV than the long call that is equidistant from the ATM and will obviously be more expensive, but does that always mean a much bigger delta? I just checked on a number of highly liquid stocks today that seem to be trading options with an...

Guys another thing that I'm trying to understand from that same chapter is the concept of tightening the wings to secure the profit of the ATM Iron Butterfly, once it's there (pages 103-104). They say it's a good adjustment technique at ~10% profit. If I get this right, by doing this you will...

It is an example from the book by Chen and Sebastian "The Option Trader's Hedge Fund". pages 106 and 107, example with SPX 1220/1270/1270/1320, ATM iron butterfly

Pages 106 and 107, I just didn't understand how the authors have calculated the negative delta of -28 for the example they described (SPX 1200/1270/1270/1320).

Thank you very much! So, if I get this right, if I am buying the wings with the same ITM probability, let's say 16% ITM on the put and 16% on the call, the call strike will *usually* (with the normal skew) be closer to the ATM, therefore higher delta? So the positive delta of the long call...

Thanks Atikon, I'm referring to the example on page 106, where they give an example of an ATM Butterfly for SPX at 1220/1270/1270/1320. What I see in the screenshots in the same book on the same page is that in this example the short put has the delta of 50.6 while the short call has -49.3 - so...

Hello guys, happy Friday to everyone! Have a novice question here. In a book by Chen and Sebastian (Option Trader's Hedge Fund) they give a great example of how to structure an ATM Iron Butterfly. One thing that I'm struggling to understand is why the fly ends up being delta negative? My...

Thanks JB, that's very helpful!