Destriero - Butterfly Trades

[.sigma]

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Short answer is yes. Textbooks don't tell you how to set up and manage your butterflies. Study his posts carefully and you will find your answer. Until I can collect enough statistics, the jury is still out as to whether I have a winning strategy. So far it is encouraging.

To my fellow amateur retails: Don't give up.

Happy New Year to all.

Iron nice trades!

and @qlai i have hundreds of books on options/trading and I’ve noticed when it comes to fly spreads a lot of books OMIT this options strategy. It amazes me, the book will have an entire chapter on synthetics... and talk about all the different types, yet not a glint of mention of the fly. Baffles me because IMO the fly is more important than most option strategies.

there’s only a few books that I’ve seen that really break down how to trade the fly, and even those books don’t go too deep into it.

 

[.sigma]

To me this doesn't look like a destry style fly. You were bullish while most of his flies are directionless and shorter.

this is not true. Dest has traded many directional flies. In fact, almost all of his flies are a prediction of price @ time.. implicitly a delta trade in vol. Hence, the reason he constantly ratio’ed and broke the wings.

 

[thefuturestrader]

I am merely observing and limited to paper trading options at the moment due to current employment, but this thread is very helpful and educational. Thanks for posting these trades, I can understand them easily. I always struggled following dest's trades.

 

[ironchef]

Iron nice trades!

and @qlai i have hundreds of books on options/trading and I’ve noticed when it comes to fly spreads a lot of books OMIT this options strategy. It amazes me, the book will have an entire chapter on synthetics... and talk about all the different types, yet not a glint of mention of the fly. Baffles me because IMO the fly is more important than most option strategies.

there’s only a few books that I’ve seen that really break down how to trade the fly, and even those books don’t go too deep into it.

Nice trades because I didn't post my losers.

this is not true. Dest has traded many directional flies. In fact, almost all of his flies are a prediction of price @ time.. implicitly a delta trade in vol. Hence, the reason he constantly ratio’ed and broke the wings.

You are right, I noticed many directionals in his trades. But he and the pros here like 132/231 types rather than the garden verity 121 that we amateurs traded.

 

[ironchef]

All I can tell is most of his flies seem to be 132 type for less than 2 weeks till expiration that he closes in 2-5 days. Don’t remember him ever mentioning repairs.

How, when and why he chooses to place them is in the dark for me. I’m a visual guy and don’t speak Greek.

His post were like Greek to me too. Even to this day, I have great difficulties understanding his posts. Too many shorthands and acronyms for this poor retail to understand.

 

[.sigma]

Nice trades because I didn't post my losers.


You are right, I noticed many directionals in his trades. But he and the pros here like 132/231 types rather than the garden verity 121 that we amateurs traded.

but remember, dest also trades a lot of 121’s. There’s nothing wrong with 121, but to take advantage of the skew the 132/231 is sometimes a better option.

121’s are symmetrical but CAN be directional if placed OTM

 

[Marcelino]

this is not true. Dest has traded many directional flies. In fact, almost all of his flies are a prediction of price @ time.. implicitly a delta trade in vol. Hence, the reason he constantly ratio’ed and broke the wings.

You may be right, but I'm not wrong either. I had this in mind, true, kind of old. He said:
"directional is totally antithetical to my personal God... I'm always directionally-agnostic"

from this thread:
https://www.elitetrader.com/et/threads/mavs-verticals.24887/page-7#post-398503

 

[.sigma]

You may be right, but I'm not wrong either. I had this in mind, true, kind of old. He said:
"directional is totally antithetical to my personal God... I'm always directionally-agnostic"

from this thread:
https://www.elitetrader.com/et/threads/mavs-verticals.24887/page-7#post-398503

yeah, and he obviously evolved his strategies over time. He recently posted (in this thread I think) about moving his expirations to the monthly cycle, instead of weeklies. He didn’t clarify if this meant for fly spreads, but yeah Dest trades it all

 

[OptionsOptionsOptions]

@destriero is a legend.

 

[ironchef]

I'll be very surprised if Chef figured out Des secret sauce...

Me too.