How did you trade the last 5 days?

bone said:
Name your contract Cowboy. The big swinging dick volume is in the exchange spreads. Only exception to the rule is INTER market where you have to scale if you want thousands. An INTER spread market is like: Russell 2000 vs S&P500. An INTRA spread market is like CL M20-U20-Z20 butterfly.

So, Eurodollar is 10K at BA. Crude Oil 500 at BA. If you’re doing INTER market like Russell versus DJ it’s whatever is on the outright BA.
More...

Bone you are speaking above my intelligence lol

One day I will know what a CL M20/U20/Z20 fly is!
 
.sigma said:
Bone you are speaking above my intelligence lol

One day I will know what a CL M20/U20/Z20 fly is!
More...

It's an intra-market butterfly spread. Buy 1 CL June 2020 contract, Sell 2 CL September 2020 contracts, buy 1 CL December 2020 contract.
 
.sigma said:
Says the guy who claims to know nothing about options ;)

Thanks!
More...

Futures and options are very very different because futures do not have shit like theta and exercise possibilities before expiry (On American style options at least) I am trying to learn my darnedest about options at this point, because pure directional trading is getting weary.
 
bone said:
Look at the settlement sheet for CL.

https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

The Butterfly is the price differential between the June 20, Sept 20, and Dec 20 Contracts. It’s a market within a market and it’s a wonderful way to trade.
More...


Indeed. Here is what bone is on about. This is a very close approximation to which fly he's quoting...

CL butter.JPG


200 bux margin requirement, to hold 4 CL contracts.

Although I do tend to get confused on this bit in their listing...

@bone, this is +1 -2 +1, or -1 +2 -1?
 
Overnight said:
@bone, this is +1 -2 +1, or -1 +2 -1?
More...

Both - your choice. Buy the wings or sell the wings. So, for example, if you buy the wings and sell the body of a particular CL butterfly at, let’s say, -21 and then a week later you sell the wings and buy the body back at +12 you’ve banked 33 tics or $330 on the trade. If, for example, you’re paying $4 per RT for CME Nymex your brokerage/clearing costs are 4 x $4 = $16.
 
Last edited:
Overnight said:
Futures and options are very very different because futures do not have shit like theta and exercise possibilities before expiry (On American style options at least) I am trying to learn my darnedest about options at this point, because pure directional trading is getting weary.
More...

Whats interesting is how futures have zero theta but they expire just like option contracts. I guess this is just the inherent structure of the product, similar to forwards and even warrants. I don't think warrants had theta?
 
butterflies are 4 fees n 4 slippages and if not native need to be executed on expensive and sophisticated software. they revert all day and if you have low enough fees you can 20 bucks a contract back n forth but thats better served by algo not a human. butterflies are the most boring
 
You must log in or register to reply here.
Back
Top