Kudos to MMs
- Thread starter nitro
- Start date
The 1 x 2 spread is hanging in there. Most of the credit that I got from initiating the position [I had the 1060 put already when I initiated the ratio spread, but if I didn't and payed mid for the 1060, it would have cost me at the time $19.00, with the price of the 1025 mid at $10.80] is gone.
At the time of inception, the spread had a net credit of $21.60 - $19.00 = + $2.60 [2 x $10.80 - $19.00]. At the time of this writting, mid on the 1025s is $6.65 and mid on the 1060 is $12.60. So the 1 x 2 value is now $13.30 - 12.60 = .70. Hence I am down $2.60 - .70 = $1.90 from trade inception.
I am considering morphing to the broken wing butterfly by buying one unit of the 1015 puts. I will evaluate this after 1:00 CST.
Real estate is location, location, location.
Trading is Timing, timing, timing.
I am 90 delta to put on the broken wing butterfly by buying the 1015 put. But when is the question? Too late and all I am doing is making it more expensive on myself. Too soon and ...
I am going to stick to my guns, and wait to evaluate. Generally, the rule is you don't buy puts on Wednesday or later, but I am not too worried about that.
Holding all positions steady, i.e, the broken wing butterfly.
I am going to raise the delta of a raise at next FED meeting to 5 delta. This may as well be zero, but in some parallel universe, the FED raises rates by .25 at the next meeting.
From this coming meeting on, the delta that the FED raises goes up by 5 delta, so that by Mach of next year, we are at about 25 delta of a .25 point FED raise.
I am going to raise the delta of a raise at next FED meeting to 5 delta. This may as well be zero, but in some parallel universe, the FED raises rates by .25 at the next meeting.
From this coming meeting on, the delta that the FED raises goes up by 5 delta, so that by Mach of next year, we are at about 25 delta of a .25 point FED raise.
>we are at about 25 delta of a .25 point >FED raise.
I'm 99 delta this wont happen. The fed would not be buying mortgages and saying they will keep rates low for an extended period then raise rates. Dude, they still havent even removed 'extended period', they STILL buying mortgages in the open market. Do you understand what this means?This means they are trying to go bellow 0% through balance sheet expansion. There is almost 0 chance of fed hikes in the next 6 months and the spread in fed futures on the backs to the front is almost free money(which I'm picking up)
I'm 99 delta this wont happen. The fed would not be buying mortgages and saying they will keep rates low for an extended period then raise rates. Dude, they still havent even removed 'extended period', they STILL buying mortgages in the open market. Do you understand what this means?This means they are trying to go bellow 0% through balance sheet expansion. There is almost 0 chance of fed hikes in the next 6 months and the spread in fed futures on the backs to the front is almost free money(which I'm picking up)