Destriero - Butterfly Trades

Here's my delta pos going into the report, to include my hedge. So net D:

2021-02-02_13-56-05.png
 
ironchef said:
I am my own worst enemy:

Everyone here drilled into me never legged in or out of a butterfly. So I have two more GILD flies, one 60/64/68, the other 61/64/67. yesterday GILD gapped up to $68 and I panic, closed out the challenged wings but left the other side alone. Shouldn't have done it! Now I can only make a small profit if GILD is above $64 or take a loss if GILD goes below $64 at expiration. If I did nothing, both would still be profitable and I have a shot at some decent profits. :banghead:
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OK, let me share my lessons learned on both trades: GILD 121 fly Feb 5 61/64/67 and GILD 121 fly Feb 12 60/64/68.

These were some possible paths at the time:

1. Stayed the course and let the flies played out.

2. Rolled the upper spread higher.

3. Closed out the upper spread.

4. Closed out the flies.

I selected #3. GILD closed today @$65.83

On the 61/64/67 I will let the bull spread expire tomorrow so the fly should record a small net profit.

On the 60/64/68 the bull spread has a week's run time and max profit of 25% at expiration if GILD stays above $64.

#1 turned out to be the best course of action. I could have booked significant % profits on both if I closed them out early this week instead of 1-21-21.

Next time I will remember @destriero's coaching.
 
destriero said:
Out 402 average on shares. It was a cover/reverse. I was long 8K delta coming into Monday. Long 3K deltas today and flat here (delta pos). Vol trade was short $50K vega.
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Dude, man, you make money whether the stocks go up, down, sideways, or invert into the space-time continuum, with your complex diagonals and verticals etc..

Even when you are wrong on a wing, your other legs you will somehow make a profit from. At the least you will be at BE, maybe have a small loss on the whole position.

Go away, inhuman cyborg trader! lulz
 
I finally bought a 231 put fly on ViX, 28/24/23 Feb exp, when ViX was having fun about gme, thanks to what I learned here.
It moved into profit quickly and I sold it back after for 1:1 (about 2$) to avoid another spike risk. Thank you traders
 
deltaf0rce said:
I bought a spy fly today 85/80/75 put, feb 5, for .81 and sold it for .82. Lost on ticket charges. But I’ll take it!
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375/80/85? When did you buy it? What was your basis/bias for entering? Why close it?
 
cesfx said:
I finally bought a 231 put fly on ViX, 28/24/23 Feb exp, when ViX was having fun about gme, thanks to what I learned here.
It moved into profit quickly and I sold it back after for 1:1 (about 2$) to avoid another spike risk. Thank you traders
More...

Nice job... Shouldn't the 23 be @ 22... jus saying ... wink... wink
 
ironchef said:
OK, let me share my lessons learned on both trades: GILD 121 fly Feb 5 61/64/67 and GILD 121 fly Feb 12 60/64/68.

These were some possible paths at the time:

1. Stayed the course and let the flies played out.

2. Rolled the upper spread higher.

3. Closed out the upper spread.

4. Closed out the flies.

I selected #3. GILD closed today @$65.83

On the 61/64/67 I will let the bull spread expire tomorrow so the fly should record a small net profit.

On the 60/64/68 the bull spread has a week's run time and max profit of 25% at expiration if GILD stays above $64.

#1 turned out to be the best course of action. I could have booked significant % profits on both if I closed them out early this week instead of 1-21-21.

Next time I will remember @destriero's coaching.
More...
Update:

Closed out both flies, both profitable.
 
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