Saturday, October 10, 2009

10/09 MNX Iron Butterfly

Continued to exit the trade, took off one more put and call spread and left the remaining of the potision to go through the weekend. I believe this is the first time I go over to expiration week with a trade that has profits in it. Learning the condorizing process and the ability to get the most out of the trade with less risk.
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2 comments:

  1. AnonymousOctober 11, 2009 at 5:46 PM

    Hi Gustavo,

    to initiate your opening position on MNX Iron Butterfly - how do you do that in TOS? I tried to get filled using an Iron Condor setting with the shorts at the same strike but couldn't get filled 3 times in a row even with caving in the price quite a bit? Do you enter as 2 vertical spreads then? trouble is I might not get filled on one side then :-(

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  2. Gustavo's TradesOctober 12, 2009 at 9:40 AM

    Hi there, I got filled as an Iron Condor, can't remember what the mid price was, but I usually cave in just a bit.

    Be very careful if you plan on doing as a vertical, as you're right, you can get filled in one side (usually the one the market is moving against) and then you'll have to cave in a bunch to fill the other side in a hurry..

    Another thing you can try, I never did this myself, is to sell the PUT and Call side first as a strangle, then buy the longs as a straddle. This way you get in with two spread (2 legs) orders instead of 1 condor (4 legs), and that may be easier to get a fill.

    Hope that helps,
    Gustavo

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