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New strategy

Discussion in 'Options' started by Samer11, Apr 12, 2016.

  1. Samer11

    Samer11 Active Member

    Hi,

    I am suggesting a new strategy that includes a sinkhole in the middle. Three points are important:

    - The strategy has a sinkhole
    - The strategy has minimal upside risk (almost none)
    - The strategy can be "flipped" (turned up-side-down), in case you want a long-vega trade.

    Adjustments as usual: Roll the shorts up if the market rallies... Blow up if the market falls/crashes! ;-)

    Please let me know what you think... would appreciate any kind of feedback!

    t+0:
    http://prntscr.com/arepfs
    http://prntscr.com/arephq
    http://prntscr.com/areqpt
    t+14:
    http://prntscr.com/arepnr
     
  2. GreenZone

    GreenZone Well-Known Member

    Samer, you'll need to add more details and create a trade plan prior to being able to call it a strategy.
    You'll need to define exactly how to construct it (strikes selection, contracts, DTE, position greeks, etc), how to manage it, and how to close it out.
    I'd also recommend that you compare it to other common trades, such as the Road Trip Trade (RTT), M3 and Rhino / White Rhino.
     
    Samer11 likes this.
  3. Trader G

    Trader G Well-Known Member

    Just curious what the long call spreads are providing? Long put debit spreads hedged with short put credit spreads (broken wing condor/ weirdor) will give you a very similar profile with one less leg of the trade.
     

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