Here is the close of the FLY I did right at the market close:
The butterfly megathread
- Thread starter VixTraderdf
- Start date
@El OchoCinco
Hey, thanks for keeping us updated on this trade. What was your thinking going into this trade? Did you have a feeling that losses would accelerate into the day or was that just gravy?
Hey, thanks for keeping us updated on this trade. What was your thinking going into this trade? Did you have a feeling that losses would accelerate into the day or was that just gravy?
It was a week long FLY expecting it to run into Froday or Monday. The large drop in the market moved ES well below the peak zone of the chart so I figured I would take the profit rather than wait for it to decay out for 3-4 days and market spike back too high. So getting out same day was bonus.
Just entered this stretched out FLY. Not feeling 100% on it with today's price action but given that it is Friday willing to let it run into Tuesday:
Risk Graph below. I feel that it does not get above 2700 but if it pops and settles just over that I have the middle strikes hovering there. Main risk is if today we explode higher then the market to market will show a bigger loss. Hoping going into Monday market settles and I can decay this out a few days.
Risk Graph below. I feel that it does not get above 2700 but if it pops and settles just over that I have the middle strikes hovering there. Main risk is if today we explode higher then the market to market will show a bigger loss. Hoping going into Monday market settles and I can decay this out a few days.
Do you find that the itm puts on ES have better fills than otm calls?
Well I am using PUTS to take advantage of the skew a bit. Below is the IV of each strike in the position. Also fills on either have not been a problem, I often try to go no more than halfway between mid and ask to buy but start slightly above it.
Closed out that FLY at 69.00 on this nice sell off...
This market sell off is making it easy to get in and out of these FLYS.
Don't believe this rally at all and entered following FLY:
Do not see ES getting above 2750 by beginning of next week when I would want to cover this. Also one more blow out day to the bottom and I can close sooner.
Do not see ES getting above 2750 by beginning of next week when I would want to cover this. Also one more blow out day to the bottom and I can close sooner.
Haven't traded a bwb, is that T0 line believable?