Very interesting trade! It would be interesting some time to discuss the contrast with a 'doublewide' butterfly, that is, instead of 60 or 70 down and 60 up- what if you just go 120 down and 110 up?
Like your video and idea of double butterfly. One question, if I do not intend to stay till expiry and square during the life. How can I place 6 sets of option orders together ? Assume one set will lose one set will win, how to break it down to place a set of square order ?
With most brokerages, including my own, you cannot place a trade of greater than 4 legs, So you would have to place each fly separately and close them separately. I look at the combined trade and when I see the profit level I want in the trades together I place an order to close each of them separately.
Very interesting trade! It would be interesting some time to discuss the contrast with a 'doublewide' butterfly, that is, instead of 60 or 70 down and 60 up- what if you just go 120 down and 110 up?
That would be a very expensive trade. I can review it sometime though
Like your video and idea of double butterfly. One question, if I do not intend to stay till expiry and square during the life. How can I place 6 sets of option orders together ? Assume one set will lose one set will win, how to break it down to place a set of square order ?
With most brokerages, including my own, you cannot place a trade of greater than 4 legs, So you would have to place each fly separately and close them separately. I look at the combined trade and when I see the profit level I want in the trades together I place an order to close each of them separately.
so would you be looking to target 10% of 16.75 or include the margin making it 10% of 26.55?
8% to 10% of debit plus margin
@ when you say plus the margin….you mean in dollar terms? like aim to make thenwhole margin back or do you mean 8to10% of the margin itself?
I mean 8% to 10% of the margin amount