Destriero - Butterfly Trades

[destriero]

Monday: inside day and drop in implieds (SN)

 

[.sigma]

Should I change my nomenclature so I can join the badass club too?

Nooo! For consistency and as Desty has stated in the past, always quote flies in ascending order. Makes sense since that’s how our brokers quote them as well as examples in books/websites. Idk it looks weird when you say I bought the 230/200/170 classical natural. But to each his own!

 

[ironchef]

Anyone of you folks trade butterflies on volatile stocks like GME, AMC or TSLA?

I found it easier to make money trading butterflies with more stable, high volume underlying like SPY, QQQ, etc.

 

[caroy]

Anyone of you folks trade butterflies on volatile stocks like GME, AMC or TSLA?

I found it easier to make money trading butterflies with more stable, high volume underlying like SPY, QQQ, etc.

.
I like the butterfly in a shorter couple day play in the weeklies. The higher the IV the cheaper the fly and the better the R/R day traded one in TSLA last Friday. Fills aren't great and probably better execution in the more liquid ETFs .

 

[.sigma]

Anyone of you folks trade butterflies on volatile stocks like GME, AMC or TSLA?

I found it easier to make money trading butterflies with more stable, high volume underlying like SPY, QQQ, etc.

Butterflies are more suitable for non-volatile underlyings, like you said. You'd have to be a marksman with precision to make a buck off a fly on GME or AMC.

 

[caroy]

Butterflies are more suitable for non-volatile underlyings, like you said. You'd have to be a marksman with precision to make a buck off a fly on GM

But when you nail one it's pretty good payout. Played the GME 55-50-45 put fly this week in at $1.50 and out at $3.50. Saved my week for the most part.

 

[tsznecki]

Butterflies are more suitable for non-volatile underlyings, like you said. You'd have to be a marksman with precision to make a buck off a fly on GME or AMC.

Have to disagree on this. Files are cheap on high IV underlyings. If you can call direction, it's cheap leverage.

 

[ironchef]

Butterflies are more suitable for non-volatile underlyings, like you said. You'd have to be a marksman with precision to make a buck off a fly on GME or AMC.

Have to disagree on this. Files are cheap on high IV underlyings. If you can call direction, it's cheap leverage.

I think both of you are correct. If your fly setup is fixed body width, very high IV gives you cheaper flies. But high IV with that fixed body width means likely overshoot at expiration and likely will incur a loss.

If you can call direction correctly, put the fly way out OTM and hit, you get huge payout.

 

[deltaf0rce]

I think both of you are correct. If your fly setup is fixed body width, very high IV gives you cheaper flies. But high IV with that fixed body width means likely overshoot at expiration and likely will incur a loss.

If you can call direction correctly, put the fly way out OTM and hit, you get huge payout.

Eh?

 

[deltaf0rce]

But stopped out - over bought. Knew I should’ve kept half. But same net result end of Friday.