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SMB SUPER SIMPLE SPREADS ??

Discussion in 'Options' started by Rod M, Apr 24, 2015.

  1. Rod M

    Rod M Well-Known Member

    Does anyone know what this is. The 1 minute intro video does not say anything. I am skeptical of anything in trading that is "super simple." However, John Locke does have some good ideas. thanks.
     
  2. uwe

    uwe Well-Known Member

    Maybe this is the same (or at least similar):

    It is an older presentation from John Locke.
     
    Capt Hobbes and Trader G like this.
  3. Rich S

    Rich S Member

    I actually purchased the program last night.

    I don't think I'm divulging anything that hasn't been announced publicly by giving a summary of the 4 trades in the program:

    The Bull: A simple put credit spread ruleset.
    The Bear: A simplified version of the Bearish Butterfly ruleset.
    The Bull vs the Bear: Both of the above trades combined together with some simple technical indicators.
    The V-Condor: An iron condor with an embedded long straddle.

    I'm not sure I would call the last 3 trades super simple but they are simple by John Locke standards. :)
     
  4. Rod M

    Rod M Well-Known Member

    Thanks for the video and the comments. Rich, once you get into the course, maybe you could share some of your results here.
     
  5. Chuck

    Chuck Active Member

    Hi Rod and QuantyCarlo experts,

    Here are the rules from the YouTube video above:

    Entry: 65 DTE in RUT
    Exit: 37 or 30 DTE when back month is at 65DTE or position is down $250 per lot.
    Max Loss - $250
    Max Gain - $250
    Tactic -Short 30 point wide put vertical to open, Short Strike is at 10 delta.

    Could QuantyCarlo be used to compare SPX results against RUT using this setup?
     
    Stephen, maxtodorov and Trader G like this.
  6. Trader G

    Trader G Well-Known Member

    I picture the bull vs bear looking like an M3 minus the upside T+0 slope
     
  7. Rich S

    Rich S Member

    It has similarities. You don't start out quite delta neutral and you are more exposed to a large upside move than you are with the M3. That's why there is a technical rule to not trade the bearish fly unless the market is very over-extended.
    Overall, it appears to be a well thought out and thoroughly tested cookie-cutter trade. I wouldn't expect any less from John Locke.
     
  8. Capt Hobbes

    Capt Hobbes Well-Known Member

    Hi Rich, what are your first impressions now after a couple of weeks?
     
  9. Rich S

    Rich S Member

    BVBJUL15.png I put on a Bull trade (Put CS) a couple of days ago and converted it into a Bull vs Bear (added a BB) with the run up today. This is not the official guidelines; I'm already finding myself adding my own tweaks to the trade.

    Overall, I really like the trade. The T+0 line behaves a lot like an iron condor but the adjustment rules reall
     
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  10. meyer99

    meyer99 Well-Known Member

    Rich,
    Once you got the bull and the bear on (either 1/3, 2/3 or 3/3), what is your stop out if the market drops? Is it a fixed $ amount like the Bull or a percentage?
     
  11. Rich S

    Rich S Member

    My plan is to take off 1/3 at a time as I hit the tent on the way down. Final 1/3 will be taken off after I hit the long of the last fly. I will also take of the put cs at this point.
     

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