Destriero - Butterfly Trades

ironchef said:
@themickey, if you are 99% clueless, I am only 1% better. @Overnight, you got that right again. :D

I don't know about others on here, I just pretended I knew something so I spitted out gibberish to confuse everyone including you.

Have a nice day.
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btw chef, thanks for this thread.. you definitely sparked something.. I mean even Desty is frequently posting gems again! Cheers, friends!
 
.sigma said:
.... i'm kinda shocked by this post. Options aren't complicated. Its the industry that tries to complicate the simplex to deter on-lookers........
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I run a reasonably complex but simple system, have my hands full mentally, but I have a trading system which just repeats over and over, can't deviate down a new rabbit hole. :)
Don't wish to rock a boat which atm churns out dollars.
Today for example (mkt been open here just over 3 hours) had a portfolio swing of over $20,000.
Will stick to my knitting hehe :)
 
destriero said:
Anyway, you can't stress the thing to the wings as nobody is going to hold it to a touch of 1700 or 2500... but typically that's what I do with all structures--stress it to the point of neutral gamma.
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Thanks, but what exactly do you mean by that?

All I can think of is this, looking at 30 day from now, but not sure what to make of it.

upload_2021-2-16_19-43-3.png
 
.sigma said:
btw chef, thanks for this thread.. you definitely sparked something.. I mean even Desty is frequently posting gems again! Cheers, friends!
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No need to thank me, we are all in the same boat, trying to beat the system and make a living.

I make my living dealing with negative theta, negative delta, gamma, vega all the time and it gets depressing.

A good fly is different.
 
destriero said:
Not really. It's the Speed (DgDs; Dgamma/Dspot). On index you're already fooked on the vol-line as the average vol you're paying on the wings is going to be much higher than ATM as represented by the risk-reversal (vol). Even on SN as buyers are going to be willing to pay a dollar-figure on a strike regardless of the vol-line.
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SN stands for????


destriero said:
He won't trade it naked so he goes wide.
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Yes... but why GOOG?
 
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