Superfly!

Wow...so Gemini read my previous posts on FF and then actually found the trade I was referring to - the link goes to a screen shot of that actual trade. I continue to be amazed.....

Best to get in as cheap and as wide as possible. If you can't go wide, you can still go cheap and stack them...

hi-lo calls for Monday

All these years I been trading call calendars and diagonals for upside range capture.... full well knowing they suffer in the iv crush that comes with upside.

The better trade is flys for upside, as they benefit from the iv crush. Damn. Why am I so dumb?

Now, now, better late than never, stack flys in time and distance otm, as shown below for the upcoming bullish week.

By comparison, use flys/calendars for downside range capture. Increasing iv hurts the fly yields, but improves the diag/cldr yields. Always put calendars closer to atm than the diags, and be ready to kill the whole combo if price is moving hard below the calendar strike. You don't have to include diags, and can just stack a couple cldrs, about 100 pts apart. I'll do the latter if I have strong bearish conviction. If you do use diags below cldrs, put the diag short strike at least 100 pts below the cldr strike. (This applies only to SPX, of course.)

2dte fly combo for bullish conviction - symmetrical fly as wide as you can afford, set at most $10 from atm, with long calls @ the far wing

for the bear case, no flys, but the 2/3 day calendar, strike 40-50 pts below atm, with 1:1 long puts 20-25 pts below that

took an added $0.75 for the bwf, probly full loss for the vert, so about a $0.70 loss.

hi-lo for 12/2, btfd gotta be lurking

today's hi-lo is making money & will net >$100 net if SPX can grind up over 6850

...took a $0.40 loss. These are not so good in sideways market. Nevertheless, I could have scratched out a small gain with better execution. If you're patient, you can get added credit off the bwf ... sometimes this can be a lot, with a perfect finish, but it's a tight window. Hmm....maybe try making the flys with wider wings.

for tomorrow...

look at hi-lo 2dte cash out 1dte

you can try to widen out the bwf, so get in the combo for low debit and just try to fish the expiry peak

@ 1dte or 2dte, about 15 front wing best you can do...worth it to get in the call guard instead of the vert, as that nullifies the upside risk. Totally an end game play.

multiply the fotm calls for bullish conviction

in heavy put skew hard to find very low debit, @ 0dte- but can widen the fly for good results. The iv rise will hurt the fly, though...

6 straight days of chicken shit. The hi-lo trade can do ok ina flat market, or at least, lose just a little. I took an added $1.10 credit from the bwf above, which puts me $0.60 in the hole on the combo. Likely I will wait a bit for signs of a break out north, but looks unlikely...

expecting low volume slight range Mon-Tues, I will try some low cost hi-lo's to see if I can catch an expiry peak

these are so nice when they end up in the tent on expiry day. I had a few and let 1 ride til this morning, came off for $21 net, which helped to salvage my week.

hi-lo calls for Monday