Comparing the Greeks in options and Nadex


#1

#2

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.


#3

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!!


#4

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?


#5

Binaries are the delta of a call option it’s not the same as vanilla options.