... for a 1.45 credit. Comments: Doing something a little bit funky here for me, targeting the current zero gamma level at around 3935 with my short options and erecting my longs out from there. Metrics: 1.45 credit on buying power effect of 8.55 with a max profit potential of 21.45. Delta 1.18; theta 4.46. A "perfect landing" would be at 3735 at expiry, but...
Range-Bound Pullback Set-Up: Since about early September GME has been range bound between 29 and 24. The entire market was down for the month of September, yet this traded range bound in this area. But towards the end of September, it tightened it's range bound between 27 and 24 and trending lower at a slow pace. With the big green day we had in the markets...
... for a 3.20 debit. Comments: Filled for a 5.40 credit (See Post Below), out here for 3.20, a 3.20 ($220) winner. Not quite 50% max, but I'll take it given the whippiness of the market lately. * -- Broken Wing Butterfly.
... for a 41.50 credit. Comments: I don't think this is coming back into the setup by expiry (but I will scream if it does). Filled for 4.40, out here for 41.50, a 37.10 loser.
... for a 5.40 credit. Comments: A 100 x 50 broken wing butterfly, selling the 20 delta's and buying the wings out from there. Will generally look to take this off at 50% max. * -- Broken wing butterfly.
Crude oil shows strong upside momentum. In this video I explain why the correction may not be over, and how to trade it with an options strategy. Trade ideas for educational purpose only.
The Russell is approaching a potential target zone. In this video I share an idea how to trade it with a Broken Wing Butterfly that will benefit from time decay during a potential re-accumulation. It has defined risk in case the selloff continues, and no upside risk in case the bounce happens earlier or is faster than anticipated.
... for a 2.20 debit via a good until cancelled order to take profit at 50% max. Comments: In for 4.40 (See Post Below), out for a 2.20 ($220) profit with 16 days to go. 4.8% ROC as a function of buying power effect. Still have a May 20th 4100/2 x 4200/4250 on. * -- Broken Wing Butterfly
... for a 4.50 credit. Comments: Been waiting for a little bit more weakness before doing another one of these. (See Post Below). Selling the 20's, buying the long call 50 strikes out, buying the put 100 strikes out. * Broken Wing Butterfly.
... for a 4.40 credit. Comments: I would like IV to be higher and SPX to be weaker, but can't have everything. Selling the 20's and erecting my longs out from there. 4.40 credit on buying power effect of 45.60; 9.6% ROC at max 4.8% at 50% max. Will generally look to take profit at 50% max, but will also look to manage the two aspects of this setup (a short...
In previous market environments, my go-to strategy in SPX was the short put vertical, but if you've been around the past several weeks and had those on, you probably did a bit of sweating as price moved into the spread, took some loss on those that were fully in the money (only to scream as price whipped back the other way), and or wished that you had a setup on...
I'm probably sticking this out there in too lengthy of a duration relative to the binary event I'm looking to play, but wanted to post it in the event I space the play out. Pictured here is a double 4 x 2 broken wing butterfly. Due to its being an 8-leg position, I legged into the put side for a .35 credit and then into the call side for a .34 credit, for a...
opcalc.com 340/350/350/355 18.56/13.80/13.80/11.81 TSLA, Exp Jan 17 Broken wing butterfly, upper skew. $2.77 Max loss, max gain is $7.23 @ 350 My target is $2 profit around 25% of the max credit.
A seasonality play in retail at long-term range rows with a break even below mid-range ... . Markets are wide here in the after hours, so may have to do some price discovery to get a fill. Metrics: Max Profit: $181/contract Max Loss/Buying Power Effect: $19/contract Break Even: 43.19 Delta/Theta: 5.55/-.09
BW Butterfly Spread $135/125x2/120 EXP Aug 16 Entry was $2.38 Credit, Max risk is $311, Target is $126 exit at support or holding until Exp at $125 if profit hits $250 I may end up take it. Double top and bearish sentiment
... for an .89/contract credit. Metrics: Max Profit: $289/contract Max Loss: $111/contract Break Even: 282.89 (no downside risk) Delta: -6.75 Theta: .41 Notes: Taking a small directional shot at/near horizontal resistance with a risk 1 to make greater than 2 setup ... . Will start to look to take profit at 25% max (.73/$73).
... for a .43/contract credit. Notes: Selling premium buying power free (because I have a put butterfly of the same width on; see Post Below) and to pick up some short delta in my SPY core position running into December opex. It probably only makes sense as an adjustment trade and not as a stand-alone ... .
Metrics: Probability of Profit: 75% Max Profit: 2.50/contract Max Loss: 2.50/contract Break Even: 258.50 Delta: 3.59 Theta: .43 Notes: Looking to add some small long delta to my SPY core position. Unlike short puts or short put verticals, this setup will actually benefit from price moving in toward the setup. Although max profit is realized on a "pin" to the...