As Mo and I mentioned, and confirmed by riskarb, now is the in between time I do not like, too close to FEB expiration and too far to MAR expiration. I will wait until next week and resume my scans.
Riskarb's combo to fly conversion journal
- Thread starter riskarb
- Start date
your right...and I threw in a put spread for good measure
...I would have done better to just buy the stock and sell a put because I was quite bullish on it..or just buy calls...but I was trying to figure out how to do this conversion in an IRA....oh well...My arrogance in thinking I can adjust an OIH condor. Had the 145/160 condor 2 days ago, had to readjust down to 35/40/45/50 now up to 145/50/55/60. .....What an ass...
Lesson learned... Don't turn a limited risk spread into a spread where u can't win due to repeated adjustments. My pnl profile is now below the line regardless of where OIH finishes.
^$%^$#%@#$%@$#%@$#
Lesson learned... Don't turn a limited risk spread into a spread where u can't win due to repeated adjustments. My pnl profile is now below the line regardless of where OIH finishes.
^$%^$#%@#$%@$#%@$#
Don't sweat it. Everybody does the same thing from time to time. Adjustments are so enticing because option positions are so versatile - like the sirens' song. Tie yourself to the mast and steer straight on.
Good luck.
Good luck.
Riskarb was right in his strategery of diversifying names. Instead of 10 flies on 1, 1 fly on 10 names. Prevents you from focusing on 1 and letting the attractvie risk reward of the strategy take its course. I have a better game plan now. Buy the fly and turn off machine. Revisit 2 days before exp. Make it a binary bet, either it loses $1 or makes $2 at sweet spot.
Nice point about siren's song. It truly is....
Nice point about siren's song. It truly is....
MRVL came up on my scan today. Trading at $65.57 with ATM vols at 67 in MAR. Earnings due 2/23.
Sold 3 MAR $65 Straddles at $10.30.
Looking for some decay heading into earnings on Monday since IV contraction is not likely until earnings comes out. ATM vols in FEB and APR are around 50 which is where I would like vols to head post earnings. We will say by Friday if I can make any adjustment.
Sold 3 MAR $65 Straddles at $10.30.
Looking for some decay heading into earnings on Monday since IV contraction is not likely until earnings comes out. ATM vols in FEB and APR are around 50 which is where I would like vols to head post earnings. We will say by Friday if I can make any adjustment.
Adjustment to MRVL position.
Originally I sold 3 MAR $65 Straddles at $10.30
Today bought 3 MAR $60/$70 Strangles for $5.35.
Net debit per IRON FLY is $0.05.
Might add more to this position but IV came down from 67 to 64 or so. Still high so may layer another position on top of this since this one is basically free (well ok a nickle).
Originally I sold 3 MAR $65 Straddles at $10.30
Today bought 3 MAR $60/$70 Strangles for $5.35.
Net debit per IRON FLY is $0.05.
Might add more to this position but IV came down from 67 to 64 or so. Still high so may layer another position on top of this since this one is basically free (well ok a nickle).