DDTT

[ducati916]

just in the process of shifting to a new computer...headache

So the trade was filled at $0.48 but added another 5 days, so Expiry is 20 Feb, otherwise everything else is the same.



Trade needs to >$613.47 and <$620.57 before/on 20 Feb


jog on
duc

 

[ducati916]

Glad I put the extra week on




Definitely bogged down and struggling currently.

jog on
duc

 

[ducati916]

So quite happy with this position so far



Has another week to expiry. Should reach the target of $216 at which point I will close it.

jog on
duc

 

[ducati916]

Closed FDX for a nice profit



Same strategy as SPY, just that SPY is less work.

jog on
duc

 

[ducati916]

Have an order in



Waiting for execution


+++++++++++++++++++++++++++++

Filled



Max profit $468
Max risk $35

jog on
duc

 

[ducati916]

Closed TXN for a profit



jog on
duc

 

[ducati916]

Just to try a different strategy, but same idea:

2 days expiration



jog on
duc

 

[ducati916]

Orders placed. Will check tomorrow if filled or how close to execution they are.

Essentially market neutral, $1 risk for $499 profit (on this pricing).

With 37 days to trade, COIN has the ability to move into profit areas, sort of follows BTC.

jog on
duc

 

[peter2]

Unbelievable, in spite of poor earnings, TXN reversed on a dime and went straight to your profit zone. Nicely done.



The BO>185 should have interested me if I was watching it. But alas!

 

[ducati916]

So same strategy, just morphed into a market neutral position:



So self explanatory really.

I have 85 days for MSFT to either go up or down enough to take partial profits. The partial profits (should) still be higher than the combined risk, for those that do not move at all into some sort of profit range.

Max profit (on either position +/- $475
Max risk on both positions combined = $41

theta and vega risks offset by the structure of the trade.
Lots of time to allow some movement towards profit
Market neutral (my favourite type of trade)

jog on
duc

 

[ducati916]

For tomorrow:




Max profit $474
Max risk total = $44

jog on
duc

 

[wabbit]

Duc,

How are you selecting your short strikes?

 

[ducati916]

Duc,

How are you selecting your short strikes?

View attachment 193769

So if you look at the chart posted along with the orders, you'll see pivot points (PP) at various levels. I pick one of those each way (bull/bear) as targets and set up the trade at those targets.

The intention is not to hold to expiry.

I'll close the trade once price trades in the vicinity. So obviously max profits are never going to be available.

The butterfly structure however is such small risk that it is easy to be market neutral. Add in enough time and voila! Because you are selling options theta and vega risk are mitigated.

So trades today:




Closed for a profit.

BIDU opened:



So for a total risk = $47 I have a market neutral position that has a max profit of $477 +/-. Now as stated, I won't hold to expiration, I'll close when (if) price trades in the vicinity of either $65 or $110.

I also closed out the SPY trade:





jog on
duc

 

[wabbit]

So if you look at the chart posted along with the orders, you'll see pivot points (PP) at various levels. I pick one of those each way (bull/bear) as targets and set up the trade at those targets.

It's the discretionary choice part I'm curious about -- sometimes your short strikes are at R1/S1/R2/S2, sometimes they are in between, or otherwise; how are you choosing?

I've played with Iron 'Flys before, but never combined the puts and calls into a "single" trade (Tasty only allows four legs, which I think they could improve on) but I am liking the idea (theta and vega neutral FTW?) so am following this thread with interest.

Have you played with optionstrat? It's nice for visualising trades and keeping score. No limits (that I've found yet) on the number of legs for an underlying... so you can easily show an entire position in one P/L chart. (Free version has limits (delayed data, no net-greeks, no POP etc) but I've not missed any of the paid features).

A small request: When you open a trade, can you pls post the individual leg prices for us following along at home, if it's not too much trouble?

 

[ducati916]

It's the discretionary choice part I'm curious about -- sometimes your short strikes are at R1/S1/R2/S2, sometimes they are in between, or otherwise; how are you choosing?

I've played with Iron 'Flys before, but never combined the puts and calls into a "single" trade (Tasty only allows four legs, which I think they could improve on) but I am liking the idea (theta and vega neutral FTW?) so am following this thread with interest.

Have you played with optionstrat? It's nice for visualising trades and keeping score. No limits (that I've found yet) on the number of legs for an underlying... so you can easily show an entire position in one P/L chart. (Free version has limits (delayed data, no net-greeks, no POP etc) but I've not missed any of the paid features).

A small request: When you open a trade, can you pls post the individual leg prices for us following along at home, if it's not too much trouble?

Simply based on a combination of time and distance. More time, greater distance. Shorter time closer targets.

I have a look at ATR, but just a glance.

Not terribly scientific. LOL.

jog on
duc

 

[wabbit]

View attachment 193645

Trade management: With COIN now on the south-side of the put ratio spread, do you roll down, or wait (hope) for the price to move into the "tent"? Or, take the profit?