Swing trading with Butterflies

taowave said:
Good thread..Would you add the last price to make things a bit easier..

I only trade structures similar to you if I believe I get skew edge/skew Delta.( sticky delta)

Is your approach strictly directional??
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this is what I want to emulate. I’ve never opened a fly with a skew edge/delta bias
 
Im sure you have,perhaps without intent :)

Its really not complcated and you can easily eyeball it and ballpark the bias..

You just have to hope that Mr Sticky Delta prevails,and that "bitch" Sticky Strike doesnt rear its ugly head....Massive Buzzkill when that happens:)
 
Opened this today anticipating a slight fall in oil price this week, then watched it drop USD2!

Trade date: 03 August 2021
Security: CL
Price at opening: 71.62
Direction: Put
Expiry date: 06 August 2021
Strikes: 69.5 / 71.25 / 73
Structure: 1 / 2 / 1
Opening Spread: 0.46

Trade date: 03 August 2021
Security: NET
Price at opening: 119.09
Direction: Put
Expiry date: 06 August 2021
Strikes: 109 / 114 / 119
Structure: 1 / 2 / 1
Opening Spread: 0.91
 
Last edited:
Global OptionsTrades said:
Trade date: 03 August 2021
Security: NET
Price at opening: 119.09
Direction: Put
Expiry date: 06 August 2021
Strikes: 109 / 114 / 119
Structure: 1 / 2 / 1
Opening Spread: 0.91
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Any reason why you chose this sTock? It’s options are pretty illiquid.
 
swingtrader123 said:
Have you ever tried an unbalanced butterfly spread?
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Yep; about 1 in 10 trades are unbalanced - although all those posted here to date are not.

Relevant as the FTSE trade today should have been 2/3/1 6775/6800/6850 but my model had a glitch and I didn't have time to sort it out, so placed a balanced 1/2/1 instead.
 
.sigma said:
Any reason why you chose this sTock? It’s options are pretty illiquid.
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Good question / observation.

The answer is legacy, and that I have a long position in NET so have occasionally popped a Put Fly to capture upside when I expect price to drop back. This trade wasn't a good one so I closed it today. I'll try not to add NET trades to the journal in future.

The stocks that I screen for on a daily basis for this type of trade are ADBE, NFLX, TSLA et al.
 
Shorted FTSE with this today. Per #16 it should have been an unbalanced 2/3/1 structure.

Trade date: 04 August 2021
Security: FTSE
Price at opening: 7067
Direction: Put
Expiry date: 20 August 2021
Strikes: 6825 / 6800 / 6775
Structure: 1 / 2 / 1
Opening Spread: 1.00
 
Change of sentiment on this one, so closed it at a small loss.

Trade date: 03 August 2021
Security: NET
Price at opening: 119.09
Direction: Put
Expiry date: 06 August 2021
Strikes: 109 / 114 / 119
Structure: 1 / 2 / 1
Opening Spread: 0.91
Close date: 04 August 2021
Trade duration: 1
Closing spread: 0.70
Profit / (Loss) -0.21
Profit / (Loss) -23.1%
 
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