You would be better off starting with spreads to isolate other greeks you may not want to expose yourself to.
thousands! oh my! ... check out Amibroker.com.... single license ~ $350 TO BUY and own forever + IQfeed $70 monthly for streaming data...this will...
just doing an "eye test".--- see the slope between 1999-2001 vs 2015-2017? most likely due to higher iv's then vs now... also see the steep drop...
I don't think it is a big issue per se BUT by isolating it through wing purchase turning short straddle into flies, you might be sacrificing...
i would'nt say flies kill all the profit.. it does a good job in isolating vega so you only have to worry about other greeks since flies are vega...
the bid/ask spread w all these legs will kill you... also it is not a matter of win/loss % but the payoff when you are wrong. It is also human...
without even getting into the actual spread. I can tell you off the top. You will not get this pnl Profile without taking on leg risk. The reason...
PnL profiles get more precise the closer you get to expiration because then it becomes a simple exercise of the debit/credit you put into the...
Give me example(s) of too good to be true analytics ... spreads? expiration plays?
cc..listen to the last 3 posters. They know their stuff... seriously..
thinkorswim .. check their ondemand
I would start by looking at historicals of the crush post earnings announcement. You can create a whole science out of this trading method....
Cf. there are tons of books about diff ways to hedge- $ neutral, Beta neutral, options,etc. Check out "Trading PAirs" by Whistler. I am sure...
I think one way of arbing what you talked about is to buy the spot month future and take delivery of the physical commodity, pay for the storage...
Gonna defer talk about futures spreads to the experts out there (not me for sure.. lost tons of $$ on it in past life) . misterkel, I assume you...
unless u were in the good 'ole days at the floor in a soft options pit about to release a crop report OR breach a multiyear resistance and IV is...
I remember that thread- that was a nice one about layered entries,etc. Sprinkling across price spectrum (assuming you have legging in competency...
Pekelo. if you stumble across 1-2 of this occasionally , it is a good thing.Now when you start "sprinkling" across price spectrum- then it can...
Good analysis JackRab. However, if you have the ability to somewhat predict direction or magnitude or some legging in ability to put on a bunch of...
I just loaded the legs and the market on that fly is 3.55 natural and mid mark at 4.77 which means you probably get it closer to $4 credit then...
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