My new blog is coming!

…But first I need to read wordpress for dummies…

2 Responses to My new blog is coming!

  1. I saw your link in the TOS Trader Lounge chat room today (before it rolled off).

    If there had been a black swan event, such as a future earnings warning, you could have faced a large loss.

    A safer trade would have turned the trade into an “Iron Butterfly” by buying the April 39 calls and April 37 puts. I modeled this in the TOS platform ThinkBack tab. They show an even better opening trade of 2.30 for selling the straddle. Usingb the round number of 20 contracts for the straddle, an equivalent cash outlay for the Iron Butterfly is 50 contracts. That would have resulted in a profit of $625 versus the profit of $1500 for the straddle. Also, much less margin would have been required due to the limit risk of the Iron Butterfly.

  2. Allan, thanks for the input. You are correct, by adding wings it would have been a much safer trade with similar percentage returns.
    Thanks, Lawrence

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