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Trading group 2 Sep. 6 2016

Discussion in 'Options' started by status1, Sep 10, 2016.

  1. status1

    status1 Well-Known Member

    I have a few observations / questions about the Trading group 2 presentation from a few days ago
    There is a trade at around minute 37 into the video the Sep 30 trade
    The graph looks ok but it doesn't seem to add up when you look at the trades Maybe some adjustment was already done to get it into that position ?
    The position trade shows 10/-10/10 2190/-2140/2090 on the put side and then it shows 1/-8/-2 2135/-2150/-2160 on the call side
    So basically this trade has net 9 naked short calls
    I just can't make the graph to look like the one in the video given with those positions shown
    Maybe there are some other trades further up that is not shown ?
    Are those 2150 and 2160 should have been puts ? The position in the video shows them as calls so there something doesn't add up if you only look at the positions shown in the video
  2. ACS

    ACS Well-Known Member

    The trade that starts around minute 37 is an M3 with a 10 lot iron butterfly and a long call.
  3. status1

    status1 Well-Known Member

    Yes I see it now
    The 2190 was a call not a put
    That makes more sense now
    Looks like the trade is just past the max profit with this Fridays big drop so it may be time to close it with only a few weeks left to expiration
    I have a couple of Oct BWB trades that are in similar shape and I was wondering if I should close it or start thinking about adjustments considering the magnitude of the move and probably more follow through next week

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