YTD performance: +$8,609 +3.4% return on capital at risk: +43%
Thoughts
Good week and happy with the results.
Curious what they could have been had to exit all trades shortly after the open legged SPCE the only loser due to work commitments all day with the day job.
Happy with wider strikes as a set up.
A good mix of call and put flies without the hedge.
SPX rolled up and locked the $200 in leaving a free fly should we have a massive sell off throughout the day but I have no risk. Will keep playing around with these BWB flies next week in SPX and some high dollar value SN's
Wishing all a good weekend.
Feel like I'm learning what is working and what is not. Don't want to get over confident and lose caution and discipline. Take the wins learn stay humble trade on.
Very Good Job this week. So happy for you!! Keep it going and thanks again for sharing all the good and bad with us. It is a net good so Congrats and I know you will have a great weedend. It is really astonishing that you had profits on both sides the calls and the puts
Earlier in the week some success with the SPX broken wing fly and a few short term selling iron butterflies in SPX made about $300 on these total Experimented again with broken wing fly on monday in AMZN ended up buying back today for a small loss of $130. Fat finger error on the entry.
Performance up 4.1% Return on Capital at Risk YTD: up 51.2%
Thoughts
Happy with this week and overall new highwater mark for this strategy.
Another week of wider strike flies and fewer positions keeping capital allocation at only 20k or about 7% Thinking of upping this to a full 10% next week.
MRNA was a run away loser early so exited on open to trim loss.
Didn't have time to screen sit all day due to other obligations so out of all positions by 9:45 AM playing the opening moves.
I am still primarily placing directionally biased flies based on the strike with the highest OI for directional move.
Will continue to experiment next week with opening on Monday two to three broken wing put flies for credit and then rolling up the broken wing to lock in a credit and provide a free fly.
Will also do a few selling of 20 point wide Iron Flies in SPX for quick decay moves if time allows
Thinking about potential annual return. Have been trading the larger account for 12 weeks. If future replicates could be a strategy that returns 30% a year while keeping capital in cash 95% of the time. Wishful thinking and probably dreams and unicorns but time will tell.
My ten year old daughter is pleased once again that RBLX was the big winner. I have no idea whatever this game is that she and her friends love but she's constantly bating my ex into buying her crap on it so they must have a decent revenue model.
It's clear that you're profits are increasing since you :
- reduced the number of trades
- took away the SPX/VIX hedge
- reduced the number of meme stocks
- increased the wing width.
It's clear that you're profits are increasing since you :
- reduced the number of trades
- took away the SPX/VIX hedge
- reduced the number of meme stocks
- increased the wing width.
@ffs1001 Agreed. Putting the input from others on this board - yourself included - has helped refine the strategy. Ditching the hedge has helped immensely.
@IlliniTrader last couple of weeks it has worked to just exit pretty early after the opening. The move towards highest OI seems to either happen or it doesn't and waiting around can turn winners into losers. I exited NVDA at a nice win early had I held it would have had a massive sell off.
I have not looked closely at the structure of the trade setup but are you getting most of your profits in price movements of the underlying toward the pin level or is it price decay of the 2 options sold in the middle of the BF?
It's really both coming into play at once. I'm usually in stocks with good implied volatility otherwise it would be cheaper to just buy calls for the directional move. Thursday to Friday all these factors combine as theta goes to zero and your long call gamma goes full as your long calls are ITM and their delta goes to 1. Part of why I've gravitated to the Thursday entry.
