Baozi ... might be interesting for you to compare
#1 / your 123 Fly ... 275-285-290
against
#2 / 121 Fly ... 275-285-290
#3 / 1111 Condor ... 275-280-285-290
What's the difference between the 3 strategies
Why would you choose #1 over #2 #3
taking longs out of a fly
- Thread starter Baozi
- Start date
Baozi ... might be interesting for you to compare
#1 / your 123 Fly ... 275-285-290
against
#2 / 121 Fly ... 275-285-290
#3 / 1111 Condor ... 275-280-285-290
What's the difference between the 3 strategies
Why would you choose #1 over #2 #3
@jamesbp , you sound as if you have quite a treasure chest of knowledge about 132 flies etc - but are drip feeding the know-how in little bits. Totally fine, of course. Care to explain a little more about the dissecting part and how it helps adjustments? Or point us towards a source.
Happy trading.
@ffs1001
he actually already posted the source in the previous page.. Charles Cottle.
Basically the concept is that when you have a position like a butterfly/condor and their iron counterpart over a wide range, you can see it as a sum of smaller flies. You can compute all these flies and actually sell those that show some profit to unload a part of the risk off your position. I think there is a post somewhere on ET about baby flies, pregnant flies etc.
he actually already posted the source in the previous page.. Charles Cottle.
Basically the concept is that when you have a position like a butterfly/condor and their iron counterpart over a wide range, you can see it as a sum of smaller flies. You can compute all these flies and actually sell those that show some profit to unload a part of the risk off your position. I think there is a post somewhere on ET about baby flies, pregnant flies etc.
Interesting. Is this your own vba macro calculations or you got it from somewhere else?
I've never heard of it but what you said about how it "calculates all the possible fly combos for a given chain" peaked my ears and eyes.
I'm still studying and figuring out why trade a 132 fly over the 121.
Are these 132 flys ever entered as a credit? I ask because I just set one up in $TSLA and it was a credit, but I usually see @destriero initiate these as debits?
Is it that these 132 flys take more advantage of skew and Ddelta/Dtime than traditional 121?
I know skip-strike broken wing flys are a lil directional. I know iron flys take advantage of skew, but still learning and curious on the benefits of 132/231 flys.
Are these 132 flys ever entered as a credit? I ask because I just set one up in $TSLA and it was a credit, but I usually see @destriero initiate these as debits?
Is it that these 132 flys take more advantage of skew and Ddelta/Dtime than traditional 121?
I know skip-strike broken wing flys are a lil directional. I know iron flys take advantage of skew, but still learning and curious on the benefits of 132/231 flys.
yep my own macro but nothing really fancy, just a bunch of nested for loops.. freezes my pc for 2-3 mins while calculating so obviously can't be used for live trading.
From what I have seen relative to my market, most of the time 1-2-1 flies have better stats, but sometimes depending on the skew the 132 profile is better. As far as I know, these flies are directional and should be initiated with the 1-lot leg ATM where vol is lower, and with the 3-lot leg where vol becomes steeper. (@destriero feel free to rebuke me if wrong)
In addition to dissecting the position into embedded smaller flies
... the position can be dissected into a combination of verticals / straddles-strangles / outrights ... which opens up alternative adjustment possibilities