Asymmetrical butterfly. I only know the term, but not what the asymmetric bit means, because options are just weird.
Dest's "Trade Against a Pro" Trading Challenge
- Thread starter destriero
- Start date
Asymmetrical butterfly. I only know the term, but not what the asymmetric bit means, because options are just weird.
asymmetric butterfly, probably had higher lower strike, if he sold.
OMG what the hell does that mean? 231 put fly vs a 132 call fly? On what instrument? What expiry? Options people are really out there. Well, dest is more out there than most, because he assumes that every reader of his writing knows what he is on about, on a subliminal level.
I'm one of the slow ones, man.
IT MEANS ITS MY STRUCTURAL EDGE
Asymmetric as in not equal width one side is skewed
Thanks Des.. got it
You got it? What does that mean?
Dest "bought 5 lots of" "231P fly or a 132C fly", "neutral to SPX 3130", so I assume for each lot, he bought 3 SPX 3130 puts, sold 1 lower strike puts, say 3110 or 3120, and sold 2 higher strike puts, say, 3150.
Alternatively, he could have bought 3 SPX 3130 calls, sold 2 higher strike calls, say 3150, and sold 1 lower strike calls, say, 3120 or 3110.
Am I correct @Dest?
I usually sell the body and buy the wings, but since Dest said he bought, I am assuming he bought the body and sell the wings for a debit.
I believe the edge is not in setting up these structures, it is in how one close/roll/convert in steps the different legs to finally flatten these structures that makes the profit.
Alternatively, he could have bought 3 SPX 3130 calls, sold 2 higher strike calls, say 3150, and sold 1 lower strike calls, say, 3120 or 3110.
Am I correct @Dest?
I usually sell the body and buy the wings, but since Dest said he bought, I am assuming he bought the body and sell the wings for a debit.
I believe the edge is not in setting up these structures, it is in how one close/roll/convert in steps the different legs to finally flatten these structures that makes the profit.