Thursday, August 13, 2009

08/13 MNX Iron Butterfly - SEP *New*

With 35 days to go on the SPE contracts, I started the SEP/09 MNX Iron Butterfly. This is a brand-new trade, there is not much to say abou it. One thing I am considering doing is expanding my tracking spreadsheet to plot daily variations of the Theta, Delta and Vega. Let's see.


Gustavo's Trades said...

I thought I had a comment from Gene regarding the extra Long Call. I thought I published, but somehow it isn't there.

Anyway, Yes, the extra long call is to hedge the deltas. Cut it in half to be exact.

When you first set up the Iron Butterfly, it is quite bearish, to avoid taking a directional stance, I buy 1 extra call to cut the delta in 1/2 from the get go.

Hope that helps,

Gene said...

Thanks again!