@elitethink Spy example with a…


Spy example with a 30 point spread. Based on math, the straddle is selling for 7.6 next Wed or 1 week and 4 x that would be 30 points. So here is an example on a 30 point wide iron fly.


Second graph shows an adjustment if it dropped to 262, now of course the prices would change but shows a flattening of the risk curve.


I know this is not what you are doing but just trying to get the basic math down.

So if the first graph is correct, at what point do you adjust?

Interesting idea

Stop at 9.3 debit, then add next spread in same expiration or going out to next expiration? Obviously at this point one side would be winning.

This is kind of my idea with the #lizardpies, sell the straddle to make as much decay as possible, hedge the upside, cash secured on put side.

Yeah, post the live trades, I am interested in how it works live in the market 🙂

Econ Calendar revised

Revised with today’s holiday and Jerome Powell speaks after market close on Thursday.


Maybe the leveraged products are…

Maybe the leveraged products are not so good for options. We definitely saw that with SVXY. TT has done some new research.

Obviously the advantage is a lot of them are priced lower than SPY so can use in smaller accounts.


Also, finally had time to read the optionsellers.com debacle. No one will mange your own money better than you. I think everyone here knows that. I read their book, actually good but maybe naked strangles on futures not the best idea.

Figured with a quiet trading day would pass this along.