Sweet Bobby the Super Trader

He was nearly 1200 pts OTM and long the Mar contracts. 1200 points by March... Short June which means he's taken a hit on haircut as well. He traded it at ~even and it's trading at a 7.5 credit--hence the disappearance over a 3-lot short diagonal.

Super dude is down only $1200 now. He should have listened. Shorting the diagonal is suicide and he's 1000 pts OTM.
 
PoopyDeek said:
He was nearly 1200 pts OTM and long the Mar contracts. 1200 points by March... Short June which means he's taken a hit on haircut as well. He traded it at ~even and it's trading at a 7.5 credit--hence the disappearance over a 3-lot short diagonal.

Super dude is down only $1200 now. He should have listened. Shorting the diagonal is suicide and he's 1000 pts OTM.
More...

What is the logic behind this trade? To get some protection behind 2200, while navigating black hole of death?
 
gmal said:
What is the logic behind this trade? To get some protection behind 2200, while navigating black hole of death?
More...


You'd have to ask him, but my guess is that he wanted to be net long contracts at a small credit. Makes no sense. You make nothing on the upside. In reality it decays to a bull spread due to being short the diag.
 
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Hey Bob,
gives an update, dont wait the market to bounce. If you want people to see what it is like to trade this strategy in real time, gives an update
 
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