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DDTT

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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
 


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
 
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
 
wabbit said:
Duc,

How are you selecting your short strikes?

View attachment 193769
Click to expand...


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
 
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