My option trades

Lets talk TECHNICAL skills for novices like me. If the pro´s would chime in?

Reading about butterflies. The interesting thing is they describe the butterfly trade, but in some commentary, they say you cannot lose, because you are able to sell off pieces of the butterfly and morph the remainder into something else. I´ve heard ATTICUS discussing this half a year or more back. I didn´t understand it at the time, but now I´m interested. So how can you adjust a butterfly that is perhaps losing and change it into something else? What are the practical choices? Can´t find any technical specifics on the internet how to adjust.
__________________________

Second question. In a STRADDLE, a pretty safe trade if you go out enough time. When it moves, if you close the STRADDLE as a unit, you can get a small profit, but if you close just the winning side you win big, but get left holding long calls, or puts that have lost. So what would you do and which choices do you have. to take that side you didn´t close, and turn it into WHAT? To keep the trade going until you recover something?
 
With all the recent hurrah on here with clashing egos. I might as well as chime in and praise Don Bright for helping me understand Delta Neutral trading. I found it rather complicated the way you figure it out. I guess it isn´t, but it was too me. But I am forever grateful to Don Bright for answering my dumb questions on Delta neutral calculations. Until I got it.
 
Quote from falconview:

Lets talk TECHNICAL skills for novices like me. If the pro´s would chime in?

Reading about butterflies. The interesting thing is they describe the butterfly trade, but in some commentary, they say you cannot lose, because you are able to sell off pieces of the butterfly and morph the remainder into something else. I´ve heard ATTICUS discussing this half a year or more back. I didn´t understand it at the time, but now I´m interested. So how can you adjust a butterfly that is perhaps losing and change it into something else? What are the practical choices? Can´t find any technical specifics on the internet how to adjust.
__________________________

Second question. In a STRADDLE, a pretty safe trade if you go out enough time. When it moves, if you close the STRADDLE as a unit, you can get a small profit, but if you close just the winning side you win big, but get left holding long calls, or puts that have lost. So what would you do and which choices do you have. to take that side you didn´t close, and turn it into WHAT? To keep the trade going until you recover something?
More...

There's no such thing as adjusting a trade to make it profitable.
And you CAN lose money in a butterfly. You can think of some simple examples where you can lose money in a butterfly.
 
Quote from newwurldmn:

There's no such thing as adjusting a trade to make it profitable.
And you CAN lose money in a butterfly. You can think of some simple examples where you can lose money in a butterfly.
More...

Like I did with my SPX flies just recently...
 
Quote from ryanpatrick:

Who's in FB today?
More...

I am, in an indirect way with SOCL. http://www.elitetrader.com/vb/showthread.php?s=&postid=3526409#post3526409

Quote from ryanpatrick:

I was down to $400, and put $312.99 in the PCLN may 660/650 put spread. I've been holding this one for the past week, so there really were no need for any updates, and even as the options expire today with PCLN clearly below $650, I'm only getting $700 back at market price. They are pretty crappy at pricing. I'll look to set a limit order and try to get as close to $1000 as I can.
More...


I did a couple of updates for you. I also noticed the lousy pricing today, I figure you will have to wait till 4:00pm to get the maximum profit out of that trade.




:)
 
The only person I know consistantly increasing his equity balance on these forums seems to be Ryan Patrick. Unfortunately I don´t have the knowledge, or the emotional characteristics to trade his style of earnings gambling. But I sure admire that guy. Also for posting his equity balance, with all the warts, pimples and other information.

Most other people are just not qualifying their skill set with rising or falling equity balance, so a newbie can judge the success or failure of the methods and strategies they are using. I find that annoying, but I guess EGO and embarrassment might play a part? When you get old like me, you just don´t give a damn. Having one foot in the grave already
 
You must log in or register to reply here.
Back
Top