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Makes sense to me and to add to DMO's answer for jones247; The difference between an iron and most of strategies mentioned in this dicussion is that the iron has just as many long options as shorts. The positions talked about, mostly in this thread, have extra long options on both ends.

Exactly. This has been a discusion of a 3 or 4 strike version of a Market Maker type position involving dozens of strikes in several months that will allow the Market Maker to survive any type of move. Basically the MM wants extra long wings so that the inside closer short premium can make...

While we are awaiting Maverick's reply, I would like to suggest that this position is not perfect. Like any other position, it can make money or lose money. Yes it can make more than it can lose but then so too can a naked long option. The question is: 'What can hurt this position?'...

All is well. Hope all is well with you and yours, Coach.

Hey DMO, Good to hear from you. Some of those 1000 lots were nasty, weren't they?. Hated some of those! Getting back on topic, attached is an image of the double slingshot which can be achieved many different ways. Watch* the 2-Hour lecture on the pros and cons of the Slingshot...

Sorry, Can you repost the original post? It must have been a while back. To benefit to the downside with the SlingshotHedge, one would need to buy twice as many puts making it a Double Slingshot or Double Back Spread or PowerButterfly. There is no magic to the position. It simply behaves...

http://www.riskdoctor.com/Downloads/OTTHRChapter9LITE.pdf

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Has become a chapter in "Options Trading: The Hidden Reality" available at RiskDoctor printed in color hardback or PDF.

If you have to ask, you should not trade options. if you are anxious to get rid of your money there is always the Make-A-Wish Foundation. www.wish.org. Seriously, There is plenty of free education around. Please don't rely on tips. Learn what to do and make up your own mind when you see an...

Thanks but I havn't much of a clue about exotic options.

Coulda Woulda Shoulda Meets Options: Perception and Deception In Full Color at www.RiskDoctor.com

Correct fengshui-123 These positions are long vega and short gamma-all limited risk but one must be cognizant of the implied volatility levels before and during the trade. It is possible for a unilateral decline in implied volatility that will put this spread on the ropes. Not only...

Come down to the CBOT. I am here most days. If you send it to me I might have to keep it. They are quite rare, you know.

Sell strangles or straddles and buy more further out (in distance) strangles (same month) in such a ratio that you still have positive theta. This postion will need adjusting over time as the closer to the money options' gamma grows and the further away options' gamma dwindles. This can also...