SPX Credit Spread Trader

[El OchoCinco]

Mo:

I chose PUT on the down side and CALLS on the upside simply to go after the OTM options for a better fill.

I have heard of the double Butterfly but I do not want to trade it that way. My goal is to harvest BABIES given the way the SPX moves around. I do not think I would open both at the same time since I would like to try it with my own analytical bias like I did here with the PUT FLY.

I will read those links to see if there is any insight I can get to play this. Thanks for the links.

Quote from momoneythansens:

OK, got it. Had I taken 2 seconds to examine the strikes I probably would have realised that's what you meant. However, good to clarify for everyone's benefit.

Essentially we're talking about the double butterfly strategy if you add the CALL fly. If you're trading a European exercise product like SPX then it doesn't make any difference if you trade both as PUT flies or CALL flies or IRON etc.

For those reading that haven't followed this thread since the beginning, here are some notes by an ET member (forget who) on the double butterfly strategy (doesn't address with BABY fly trading):

http://www.kaininito.com/options/articles/2005-11-01.html

Also some general discussion on butterflies at ToS that people might be interested in. Touches upon the double butterfly too:

http://mediaserver.thinkorswim.com/transcripts/unbalancedButterflies.pdf

MoMoney.

 

[El OchoCinco]

Well I am a real bastard in a sense. First I make the FLY Prego and then sell off the babies for profit. Sounds like an episode of Law & Order: SVU.

Quote from ryank:

You talked about a prego fly a few weeks ago and now you are talking about baby flies. Gestation period must be pretty short lol!

I am finishing a book called Fortune's Formula that discusses the Kelly formula and Ed Thorp (among others). Pretty interesting reading so far. Cottle's book is up next. I will learn more about all of these frolicking flies from him I'm sure.

ryan

 

[momoneythansens]

Quote from optioncoach:

I chose PUT on the down side and CALLS on the upside simply to go after the OTM options for a better fill.

Good point.

I would like to try it with my own analytical bias like I did here with the PUT FLY.

That explains why the market has bounced up.

 

[rdemyan]

Hey Mo:

I could swear there was a post from you at the end of last year saying that you were taking a break from the group and wouldn't barrage us with your posts.

Couldn't stay away could you.

Well at least your posts seem to be getting shorter.

How's your Google position going?

Quote from momoneythansens:

Barrage of posts from me here LOL. Adding the CALL fly is the same as just doubling up the PUT fly or adding an iron fly with the same strikes. What is your intention for doing so?

 

[RichardRimes]

Quote from optioncoach:

Well I am a real bastard in a sense. First I make the FLY Prego and then sell off the babies for profit. Sounds like an episode of Law & Order: SVU.

coach I think you need a NEW journal for your B-fly's

 

[momoneythansens]

You're right. Once again, I assumed that no one was paying attention. Point is, I have searched high and low and there are no other forums or threads that have decent regular content. Didn't get any suggestions last time so if you would like me to go, now's your chance to tell me where!

As for my GOOG position, to re-iterate: GOOGLE SUCKS That's all I'm saying on the matter LOL.

Quote from rdemyan:

Hey Mo:

I could swear there was a post from you at the end of last year saying that you were taking a break from the group and wouldn't barrage us with your posts.

Couldn't stay away could you.

Well at least your posts seem to be getting shorter.

How's your Google position going?

 

[rdemyan]

Hey, Coach:

Is your wife pregnant or are you guys trying to get pregnant. Inquiring minds want to know if this is affecting your trading style.

Quote from optioncoach:

Well I am a real bastard in a sense. First I make the FLY Prego and then sell off the babies for profit. Sounds like an episode of Law & Order: SVU.

 

[El OchoCinco]

Of course that is why it bounced back up, I am unbeatable as a contrarian indicator

Quote from momoneythansens:



That explains why the market has bounced up.

 

[RichardRimes]

Quote from momoneythansens:

You're right. Once again, I assumed that no one was paying attention. Point is, I have searched high and low and there are no other forums or threads that have decent regular content. Didn't get any suggestions last time so if you would like me to go, now's your chance to tell me where!

As for my GOOG position, to re-iterate: GOOGLE SUCKS That's all I'm saying on the matter LOL.

you need to go to Calender Journal and give me some feedback

 

[El OchoCinco]

True lol!

Funny thing is that in teh beginning I never was a big fan of the butterfly. My co-author LOVES LOVES butterflies and always talks about them. But these past few months I am finding more interesting ways to use them from my discussions with people so I am testing them with small butterfly nets lol.

Quote from DonnaV:

coach I think you need a NEW journal for your B-fly's