Hello Kellie. here is a tip to help plan your trades. Iron Butterflies and Iron Condors should not be placed just because. Have a plan. This tip can help narrow down instruments and when to look at the numbers. Lunch hour Friday afternoon has been very profitable for me… Appears safe between 8 and 9 also. Be out before open. You can also add Close to Close with your Expected Ranges. Then be sure your strike is at least between CtoC and Top/Bottom of the Range box… Best if Outside top/bottom of range Box. I use 10 minute chart to pull data and trade off my regular trading tick charts.
Thanks for the tip craigmac. Do you like to buy 75/sell 25 with a stop loss at 50? Do you use a stop? What have you found works the best? Is there any rules like you need a proximity of +40 away? On either side? When you put on your butterflies, what time frame do you like? Do you ever look at the implied volatility of the underlying to determine if a butterfly might be “rich”? These Nadex binaries and spreads are fascinating to me and I can’t get enough, thanks to all you guys in this forum. Keep it up!!
Another question from BRIANMCFM
…in a low volatility world right now In the indices, my goto strategy would be to put on a calendar spread, maybe a week to go on my short option, two to three weeks on my long, and lean it a little long delta, so as to have it pretty neutral, considering the vega delta relationship, and that a calendar is long vega. And basically, I would ride the theta as long as I felt comfortable with the position. On /ES I might have a 20-30 point window, where I could make anywhere from $25/day to $100/day in theta, depending on the pricing and how far away from expiry I was. Obviously, the closer to expiry, the gamma could get pretty high, and that’s what I would keep my eye on as I trade them. If we were in a higher volatility environment, I would put on a butterfly instead of a calendar, since they are short vega, but with the same type of position, only short vega,short delta to keep it neutral…
Is there any parallel with the US 500 spreads and/or binaries that I could replicate this type of position? Or any of the indices for that matter? Are binary iron condors the closest thing to that type of trading?
Binaries are the delta of a call option it’s not the same as vanilla options.
