closing a butterfly

G

Georgi90

Hi guys
I have an 33/35/37 jul20 fly on FB, hoping to make some money this week. Whats the best way to take my money off if the stock get to 35 until expiration i.e. by the end of this week. I am with IB.
Would appreciate any comments.
Thanks
 
my best advice is.. that if your believing that fb possibly could make you money with that fly spread you need to pull out a spreadsheet and calculate the standard price action of the stock recently and see how difficult it would be for it to move 5 dollars by the end of the week and put your butterfly into good profit... i'm with atticus FB is in overpriced limbo right now.. although i think in the long run there is good potiential for FB to exploit all there knowledge about us.. right now its not doing crap..
 
Quote from atticus:

There's little chance of FB touching 33 this week, let alone 35. The 33 calls are a nickel.
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Yes I know they are a nickel, FB can make 5 to 8 procent move in one day, since the ipo there were enough such days. Thats what I want. I really fucked up with that positions, 50 long 33/100 short 35/ 50 long 37, took all my margin.
 
Quote from Georgi90:

Yes I know they are a nickel, FB can make 5 to 8 procent move in one day, since the ipo there were enough such days. Thats what I want. I really fucked up with that positions, 50 long 33/100 short 35/ 50 long 37, took all my margin.
More...

Recent historical vol in FB is really doggy. I don't think we touch 33 this week.
 
Quote from Georgi90:

Yes I know they are a nickel, FB can make 5 to 8 procent move in one day, since the ipo there were enough such days. Thats what I want. I really fucked up with that positions, 50 long 33/100 short 35/ 50 long 37, took all my margin.
More...

ummm never use all your margin in one trade... thats a blow up recipe
 
who knows really.. i just say you should follow a good risk reward profile on the trade and have good position size management to keep from getting hurt in one trade that recovery is overwhelming
 
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