Weekly AAPL Butterfly Ideas from Jeff Augen

[gerr33git]

I doubt that Jeff Augen trades what he writes or talks about. He might take the other side of the trade. I have listened to his webinar in real time and watched AAPL's fly "decay".
There was no decay, the first week the fly lost huge, second and third weeks the fly began to decay only on Tuesday or Wednesday. Option markets price new weeklys with lower IV voiding any decay through the weekend, but the short gamma exposes the fly buyer to high risk. He promotes myths of easy money.

 

[cdcaveman]

Quote from gerr33git:

I doubt that Jeff Augen trades what he writes or talks about. He might take the other side of the trade. I have listened to his webinar in real time and watched AAPL's fly "decay".
There was no decay, the first week the fly lost huge, second and third weeks the fly began to decay only on Tuesday or Wednesday. Option markets price new weeklys with lower IV voiding any decay through the weekend, but the short gamma exposes the fly buyer to high risk. He promotes myths of easy money.

I agree with that totally.. but you can make money trading flys on the weeklies

 

[gerr33git]

Quote from cdcaveman:

I agree with that totally.. but you can make money trading flys on the weeklies

Yes, they might be profitable, because of the flat skew, so the fly usually is not overpriced.

 

[axolotls]

Did three trades using what he talked about. None of them went into the green. However, this is a pretty low risk/low reward strategy.

 

[diaoptions]

Quote from axolotls:

Did three trades using what he talked about. None of them went into the green. However, this is a pretty low risk/low reward strategy.

I don't see how you could finish 3 trades so fast. Where the all AAPL butterflies?

 

[axolotls]

Quote from diaoptions:

I don't see how you could finish 3 trades so fast. Where the all AAPL butterflies?

His strategy was to open Thursday. However, we had jobs report coming so waited until Friday to open. He recommended closing Friday also or hold over the weekend but to get out no later than Tuesday morning before time decay acceleration. Not the ideal time to do these since this week has iPhone5, Bernanke, Germany all flapping around.

 

[diaoptions]

Quote from axolotls:

His strategy was to open Thursday. However, we had jobs report coming so waited until Friday to open. He recommended closing Friday also or hold over the weekend but to get out no later than Tuesday morning before time decay acceleration. Not the ideal time to do these since this week has iPhone5, Bernanke, Germany all flapping around.

But this thread is only 4 trading days old.

 

[axolotls]

Quote from diaoptions:

But this thread is only 4 trading days old.

The webinar was broadcast more than three weeks ago.

 

[diaoptions]

Quote from axolotls:

The webinar was broadcast more than three weeks ago.

And brought to ET's attention 4 trading days ago. If you saw it when it was first broadcast why didn't you mention it? Option flies are very popular on ET.

 

[axolotls]

Quote from diaoptions:

And brought to ET's attention 4 trading days ago. If you saw it when it was first broadcast why didn't you mention it? Option flies are very popular on ET.

<---- Only been on here for a week or so? See joined date. LOL