I notice on the 5-Day VIPES graph that we still have upward pressure. This seems to be slowing down on the RUT profile, however, notice we only had "up" days for almost 2 weeks now.
Tuesday, September 22, 2009
09/22 MNX Iron Butterfly
At Today's closing I felt the need to control the deltas, they were getting out of hand, so I added a long NOV contract. Cut delta from -56 to -33, keeping it around the 1:1 ratio. I didn't want to go overboard here.
I notice on the 5-Day VIPES graph that we still have upward pressure. This seems to be slowing down on the RUT profile, however, notice we only had "up" days for almost 2 weeks now.
I notice on the 5-Day VIPES graph that we still have upward pressure. This seems to be slowing down on the RUT profile, however, notice we only had "up" days for almost 2 weeks now.
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2 comments:
Hi Gustavo,
Just looking back at this trade - how did you enter the trade to start with in TOS? Looks like an Iron Condor with the short strikes 2.5 apart?
Hi there,
Looking back at the day I entered the trade, it does seem similar to an iron condor, however, it was just the circunstances on the day I entered.
http://gustavotrades.blogspot.com/2009/09/0911-mnx-iron-butterfly-oct.html
As you can see o the risk profile, you'll notice the live slice was in between the two short strikes, if we were trading at the money I'd probably have entered both the put and call shorts at the exact same strike, but since we were in between, I felt it was better to split the iron butterfly.
Hope that helps,
Gustavo
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