Butterfly options

M

met1989

I have a butterfly spread how long does it take till there is some profit in the time decay ?

also if i decide that i want to lose 25$ or 100$ when the markets move its very difficult to find where there is a loss of 100$ cause it changes all the time so hw can i know that it this point its time to adjust ?or close the position ?
 
tommcginnis said:
:banghead:
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Take it easy, Tom. If you do that for everybody who asks a newbie question, we won't have any brick walls left around here... and we really need them on occasion.

To the OP: I can only hope that you're doing this in sim, because the real answer is that you should still be studying rather than trading. Trading at your current level - i.e., without a solid understanding of at least delta, vega, and theta - is simply a fancy way of throwing money in the garbage. Randomly trading flys will not bring you any positive results except by accident, and that's not exactly a reliable profit model.

Time decay in debit trades works against you, not for you, and your max loss is capped from the start (the debit you've paid plus commissions and fees.) Good luck with your lottery ticket.
 
BlueWaterSailor said:
Take it easy, Tom. If you do that for everybody who asks a newbie question, we won't have any brick walls left around here... and we really need them on occasion.

To the OP: I can only hope that you're doing this in sim, because the real answer is that you should still be studying rather than trading. Trading at your current level - i.e., without a solid understanding of at least delta, vega, and theta - is simply a fancy way of throwing money in the garbage. Randomly trading flys will not bring you any positive results except by accident, and that's not exactly a reliable profit model.

Time decay in debit trades works against you, not for you, and your max loss is capped from the start (the debit you've paid plus commissions and fees.) Good luck with your lottery ticket.
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How do you take it that I have no idea what is delta and Vega? Did I even mention those ? And I’m asking a simple question it’s not being complicated
 
met1989 said:
How do you take it that I have no idea what is delta and Vega? Did I even mention those ? And I’m asking a simple question it’s not being complicated
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Riiight. It's simple.

turn%20it%20off.jpg


Let us know how it works out for ya.
 
BlueWaterSailor said:
...and that's not exactly a reliable profit model.
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Yeah. About that.....
This guy has been on ET for 18 months and 300+ posts at this point, and from the first, has been advised to
1) do some homework.
2) ask some informed questions
3) make a plan
4) trade.

And he keeps coming back with
4) I am in a trade, and
3) I don't know what to do, because
1) I have no clue and
2) I can't even pose relevant questions.

Once or even twice, you can play on people's sympathies.
We've ALL begun from zero, right?
But now we're 18 months and 300 posts in, and........

well, just let me know if you'd like a piece of wall.

But I'd remind you: your reflection above: "...and that's not exactly a reliable profit model."
That's a roundabout way of saying what I observed to him a longgggg time ago: I will not assist/facilitate your losing your capital, by helping you halfway out of a jam on this trade, only for you to dig a deeper hole with a subsequent trade this afternoon. No. Not playing that.
 
tommcginnis said:
Yeah. About that.....
This guy has been on ET for 18 months and 300+ posts at this point, and from the first, has been advised to
1) do some homework.
2) ask some informed questions
3) make a plan
4) trade.

And he keeps coming back with
4) I am in a trade, and
3) I don't know what to do, because
1) I have no clue and
2) I can't even pose relevant questions.

Once or even twice, you can play on people's sympathies.
We've ALL begun from zero, right?
But now we're 18 months and 300 posts in, and........

well, just let me know if you'd like a piece of wall.

But I'd remind you: your reflection above: "...and that's not exactly a reliable profit model."
That's a roundabout way of saying what I observed to him a longgggg time ago: I will not assist/facilitate your losing your capital, by helping you halfway out of a jam on this trade, only for you to dig a deeper hole with a subsequent trade this afternoon. No. Not playing that.
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But for crying out loud im not asking you to save me or to help exit a bad trade or advice!!!! im just asking How long it take for time decay to show some profit in a butterfly not asking you what to do or how to do it just asking you when does it show
 
met1989 said:
But for crying out loud im not asking you to save me or to help exit a bad trade or advice!!!! im just asking How long it take for time decay to show some profit in a butterfly not asking you what to do or how to do it just asking you when does it show
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I'll answer any question you like. Pay me.
$400/hr. 1hr. minimum.
$500/90 minutes.
$600/2hrs.
$800/8hour day. $200/hr for time over 8hours, billable in 0.5hr increments.
Skype and Zoom available.

OR, you could do some homework, and get the ET rate.
 
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