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DAVE-Delta and Vega Equalized

Discussion in 'Options' started by Avi, Dec 3, 2015.

  1. Avi

    Avi Member

    Dave Freitag of SMB capital has several strategies like 5-5-5 trade, and DAVE etc. He was recently on Options tribe. 5-5-5 stands for 5% in 5 days with 5K. DAVE strategy consists of a diagonal and a 100 wide wing bearish butterfly. He manages delta and expects 15% return 45 DTE. Has anyone tried this or used this system??
  2. GreenZone

    GreenZone Well-Known Member

    The tough thing about the DaVe trade is not the initial setup, it's in how it's adjusted from day to day after you initiate the trade.
    It's essentially a "manage by the greeks" style of trade, where you make whatever adjustment is necessary in order to bring your greeks back into alignment.

    The 5-5-5/30DTE is more mechanical in nature, so that is a simpler trade plan to follow.

    If you want the details of the trades, you should get in touch with David Freitag.

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