Ok the spread is out because you risk 375 for a max gain of 125 so 3:1 rw.
Let me check the fly...
Risk reward sucks for options
- Thread starter wxytrader
- Start date
Ok the spread is out because you risk 375 for a max gain of 125 so 3:1 rw.
Let me check the fly...
The TOS stress is a 4/1 return. The Hanweck (top) is simply a exp plot of a vertical (fly) and 1/1 risk at the tails but +exp due to the fly bump.
Bull skew lock in NVDA (3-term) and index hedge. trivial long vega but left tail volcorr and upside sticky D on index. Correlation risk but it's an arb.
I must have messed up.
The NVDA returns @ expiry for the spread is 255 max profit while risking -245.
The NVDA returns @ expiry for the fly are max profit 1445 peak, 945 while risking -1045.
Fly is the best.
I must have messed up.
The returns @ expiry are 255 max profit for the NVDA spread while risking -245.
The returns @ expiry for the fly are max profit of 1445 peak, 945 while risking -1045.
Fly is the best.
View attachment 345202
View attachment 345201
RUOK? The risk is symmetric. It's essentially a corridor long (fly) and the complex position (TOS pic) is >4/1 return at tails.
Where do see 375 risk to make 125? Miss second grade math?
No actually I took it twice!
(I corrected it...yes they are symmetric...so which is better flys or spreads?)
No actually I took it twice!
(I corrected it...yes they are symmetric...so which is better flys or spreads?)
Well the complex thing is infinitely better and near RT-neutral vega but I take issue with this thread/title. Only addicts knowingly act contrary to self interest (basically all of ET); so who is going to take a pick-'em payoff at -edge? And you gotta stop with these clickbaity threads bc they are stupid.
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Why NO??
Does it have anything to do with his stumbling and fumbling calculating a 1 SD move??
Check his math...
Clown show
Does it have anything to do with his stumbling and fumbling calculating a 1 SD move??
Check his math...
Clown show
Yes I am seeing that now with the pnl...into profits earlier with price at 114 on AUG 1 you pnl 124.43 whereas with the spread you are still at a -1.03 loss.
btw the title was more of a knee jerk way to vent frustration when I failed to see a way to capitalize on a NVDA move. So tomorrow I will look at putting on a fly...
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