Riskarb's combo to fly conversion journal
- Thread starter riskarb
- Start date
You mean sell another $65 straddle? Well the $62.50 looks interesting with the move in the stock price. The $62.50 is going for $9.20 with an IV of 64....
Sold 3 MRVL MAR $65 Straddles at $9.10 (IV at 61).
With MRVL moving back higher the prices shrunk a tad so put a mid limit order in and got filled. Would like to adjust by Friday before MOnday's earnings announcement.
With MRVL moving back higher the prices shrunk a tad so put a mid limit order in and got filled. Would like to adjust by Friday before MOnday's earnings announcement.
Hello,
Would it be possible to try and speak in plain english whenever possible? I am still very much a beginner, I did read Mc Millan books but I don't understand most of riskarb's posts. All that jargon makes things look more complicated than they are.
Would it be possible to try and speak in plain english whenever possible? I am still very much a beginner, I did read Mc Millan books but I don't understand most of riskarb's posts. All that jargon makes things look more complicated than they are.
Granted this is not an easy discussion to follow, but the strategy discussed here is advanced and not appropriate for a beginner. It involves naked straddles and conversion to Iron Butterflies which is not something I would recommend any beginner to do. It is also more beneficial for your learning to get up to speed on the language than to have it simplified.
If you are a newbie than I suggest you focus on implied volatility and theta and the Greeks, and then study Iron Butterflies. Once you got those down pretty well, I think you will be in a better position to follow the concepts. I myself had some trouble following the Greek speak but am fully aware of the concepts behind it when the abbreviations were translated lol.
The jargon may be hard to follow but if you master the concepts behind it, then you can follow along once the abbreviations are defined. So focus on IV and the Greeks and ask questions along the way.
If you are a newbie than I suggest you focus on implied volatility and theta and the Greeks, and then study Iron Butterflies. Once you got those down pretty well, I think you will be in a better position to follow the concepts. I myself had some trouble following the Greek speak but am fully aware of the concepts behind it when the abbreviations were translated lol.
The jargon may be hard to follow but if you master the concepts behind it, then you can follow along once the abbreviations are defined. So focus on IV and the Greeks and ask questions along the way.
Which parts are you having trouble with? Perhaps I can assist. The strategy has been explained in different styles several times since the start of the journal and in reality just about everything was covered on the very first page. I encourage you to read from the beginning if you haven't done so already.
IMO, it is well worth expending the (minimal) effort to understand the content of what Riskarb has to say. The jargon, as you put it, allows the message to be conveyed in a highly efficient and economical way.
I too am a beginner and not very bright, so if I can get it, anyone can!
There are juicy fruits waiting for your labor.
MoMoney.
IMO, it is well worth expending the (minimal) effort to understand the content of what Riskarb has to say. The jargon, as you put it, allows the message to be conveyed in a highly efficient and economical way.
I too am a beginner and not very bright, so if I can get it, anyone can!
There are juicy fruits waiting for your labor.
MoMoney.
Earnings announcements aren't until Thurseday after the bell according to their website:
http://www.marvell.com/investors/events.jsp
Yes next THU, sorry, not Monday. Had the 23rd correct but seem to have trouble with my days of the week LOL.
I have browsed a few option threads on here and often times I have a hard time understanding what exactly they are doing or talking about. I know what the greeks, IV are, I understand what flies, iron condor, debit, credit spreads are. But I don't understand a thing in posts like this:
The peak of the gamma distro occurs at the atm strike. Selling the atm straddle is said to be selling downside curvature. The straddle bleeds gamma, at the expense of delta accumulation, as we trade away from delta neutrality, so the gamma slope implies negative gearing
first of all , when you talk about gamma, you are talking about delta, long gamma = long delta right?, long theta (decay)= short options right?
Maybe I should read Natenberg to pick up the vocabulary? Mc Millan doesn't use these expressions.
The peak of the gamma distro occurs at the atm strike. Selling the atm straddle is said to be selling downside curvature. The straddle bleeds gamma, at the expense of delta accumulation, as we trade away from delta neutrality, so the gamma slope implies negative gearing
first of all , when you talk about gamma, you are talking about delta, long gamma = long delta right?, long theta (decay)= short options right?
Maybe I should read Natenberg to pick up the vocabulary? Mc Millan doesn't use these expressions.