Butterfly options

met1989 said:
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 ?
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It will take exactly the amount of time that passes for the price mark to get above what you paid for it. When that happens mark the time, that is how long it took.
 
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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Ah. That clarifies things quite a bit. I'm inclined to help people when I can (given how much amazing help I've received over time), but there are certain indicators - snottiness, obstinacy, and inability to learn are pretty much definitive - that mean your're wasting your time and effort.

Well, I got paid in entertainment value, anyway. The "I’m asking a simple question it’s not being complicated" line was just... precious.
 
tommcginnis said:
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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i asked you already a few times to teach my privately and you declined you said yo only teach in university
 
met1989 said:
i asked you already a few times to teach my privately and you declined you said yo only teach in university
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No, you haven't. No, I didn't. Not ever.

But if you're interested, I'll take you on.
You have a small hurdle, in that you must read:
Al Sherbin's option pricing book.
Alex Elder's trading book
Options Made Easy (I think) from Guy Cohen
and have in your possession, his "Bible of Option Strategies"
And also have Brett Steinbarger{?}'s Enhancing Trader Performance nearby.

SO: buy 5 books, each available off of eBay -- maybe $100 total; none demanding of anything beyond high school math. Read three of them {as indicated}. Come with questions.

FWIW, I don't think there's a single question you've EVER posed, that was not answered/illustrated in a page or two from Guy Cohen's "Bible..."
 
You sure about that???

Think about it..

Check your math:)

BlueWaterSailor said:
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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Last edited:
You cant ask for a definitive answer with a very general question....

Is your butterfly ITM or OTM...

Do you know how Vega affects an ITM fly vs an OTM fly??

Does it have delta??

Whats the ratio of Delta to Time decay??

You should know the answer to those questions



met1989 said:
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 ?
More...
 
Yes indeed...
And why is that...You dont need to bring greeks into the equation...
An intuitive understanding goes a long way
 
taowave said:
You sure about that???
Think about it..
Check your math:)
More...

His math was good; his cases were two-legged. I mean, we're bipeds, after all. It's a habit. It's what we do. Bilateral symmetry, even. (The physique equivalent of an iron condor...)

In any case, for this OP, please GOD let him stay the fuque out of ratios.
 
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