Destriero - Butterfly Trades

Which would you rather own by FebEx, terminally?

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Skew edge on index, but obviously it's not much of a notional edge. Outright puts on single names.
 
.sigma said:
i think he meant wing/deepvert is synonymous

Use the wins (realized gains) to finance the wings on deep ITM verticals?
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There's no gamma in a DITM. There are no exposures, period. So why buy a DITM bear put vertical at 90/100? It's equivalent to shorting the DOTM call vert. It's not a hedge. It's what I've been railing against.

Buy the 10/100 verticals. It's largely too costly to buy outrights on index unless you're days to expiration. Also a good idea in modern times to have nuke-insurance.
 
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BlueWaterSailor said:
I've been struggling to learn directional trading ever since I saw a post of yours saying something like "you'll never amount to jack in this business unless you learn to trade directionally." Unfortunately, none of my experiments have worked out - they were break-even at best. Any suggestions on a method or approach?
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I know you were not asking for my advice, and as an amateur retail, I am not qualified to give advice. But no one responded, let me give you my experiences:

1. I learned chart reading skills on ET, charts are like X-Ray, CT in medicine.

2. I supplemented the information I got from charts with fundamentals.

I have been trading single leg directionals since 2013.
 
ironchef said:
I know you were not asking for my advice, and as an amateur retail, I am not qualified to give advice. But no one responded, let me give you my experiences:

1. I learned chart reading skills on ET, charts are like X-Ray, CT in medicine.
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My diagnostics equipment must be down, then. I think I've tried damn near every TA method out there, and not a single one of them has been better than a random pick. Either I'm missing some key, or there's a magical Bad Luck fairy following me around when I do this. I've looked into FA as well, and generally avoid underlyings that don't have good numbers - although for the most part I focus on liquidity and a general upward trend.

I have been trading single leg directionals since 2013.
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My record on spreads is absolutely abysmal. I've done something like a hundred of them by now, and recall only two that actually worked well. It drives me bats. Definitely would appreciate any advice you can offer, because my own efforts got me nowhere.
 
BlueWaterSailor said:
My diagnostics equipment must be down, then. I think I've tried damn near every TA method out there, and not a single one of them has been better than a random pick. Either I'm missing some key, or there's a magical Bad Luck fairy following me around when I do this. I've looked into FA as well, and generally avoid underlyings that don't have good numbers - although for the most part I focus on liquidity and a general upward trend.



My record on spreads is absolutely abysmal. I've done something like a hundred of them by now, and recall only two that actually worked well. It drives me bats. Definitely would appreciate any advice you can offer, because my own efforts got me nowhere.
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I don't use any TA, not even Moving Averages. Just raw price/volume, with bars. Bars because the fellow who taught me how to read (MrScalper in the thread "why is the obvious not so obvious") used bars. Individual equities each has their own signatures/patterns (X-Ray, CT) and if you look at one of them long enough you can usually recognize their behavior, especially thinly traded equities. And when I said FA, it is not PE, PEG... but specific events like new products, new drugs, M&A.... etc.

Spread is a completely different animal than single leg. Single leg follows the underlying direction closely whereas spreads are also affected by second order effects which are difficult for us amateur retails to analyze. So, I stayed away from spreads.

Best regards and stay safe.
 
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