Dan, why don't you suggest a strangle, we can all learn.
Hi LivetoTrade
I am not completely clear with your statement. Don't you learn anything her in this thread?
Theartofweb is showing his ideas and he is doing well. The start may was not at its best. But that is the way option trading is. We not always will have the best start and then we have to know how to adjust our miss position.
His idea is to implement a butterfly by leg in some of the legs. In this case there are only two legs left: Short put and short call. Both with strike 4700 and expire in Jan 2012.
He has started with a strangle which was not delta neutral. ( If you want any suggestions about a strangle: Try to do the strangle delta neutral )
Now he adjusted it with some kind of a short straddle, which is a combination you can do with the long strangle.
The way he did it: He toke out the risk on the upper side and he increased the risk on the downside. Some kind of idea and let's see what is next. ( He gave no explanation why he did it that way )
Any way: I have to say that this is on a level I not have seen from many here. :thumb:
Some thought and comments from my side:
- He never explained why he choose d that strikes for the strangle and he never told about any targets he has for his trade. I can live with that. If some body can trade such a free level for the whole live of the option with real invested money, and end up with any profit, I declare him: Option trader. So let's see what is going on next.
- If I spot on some points I do that when I see no information about it and I think it would be worth to be clear about it like increase in margin or volatility risk or targets which can be included in option strategies if some body is on that line.
Now lets move on with the thread and let me give the word to theartofweb. Please move on the way you do as
Adjusting is the art of option trading and you do well.
DanPickUp