Martin,
You nailed it! I was thinking the same that this is copied from somewhere.
Yes, watch the CBOE videos, use free software such as Optionsoracle (www.samosky.
"At least, that's my $0.02 worth..."
Hey, it is more than that :)
-
--- In OptionClub@yahoogro
>
> > Does anybody know how to do these adjustments, if so please show
> simulations in TOS.
> >
> > 1. BUTTERFLY ROLL
> > 2. ASYMMETRICAL BUTTERFLY ROLL
> > 3. ASYMMETRICAL BUTTERFLY RATIO ROLL
> > [you get the idea]
>
> Isn't this exactly like one of those "Do my homework for me!" questions
> that you see on technical forums all the time? Right...
>
> In this context, though, I get the distinct sense that this list comes
> from the marketing material for some sort of seminar or course, and that
> the writer is curious but doesn't want to spend thousands to learn the
> magic.
>
> If so, he's probably on the right track. A mess of jargon like this
> sounds to me like someone's trying to dress up some standard options
> theory and charge a bundle for teaching you the exclusive, hidden
> secrets previously known only to insiders.
>
> Sure, people in this business love to give flashy names to their trades:
> straddles, strangles, butterflies, iron condors -- I've even heard of
> "centipedes" and "pterodactyls"
> amount of terminology is useful: it's easier and clearer to say, "I sold
> an iron condor" than "I sold a call spread and a put spread with the
> same underlying and the same expiration". But someone's really getting
> carried away here. Who on earth would say, "Oh, the price of XYZ has
> moved up; now I need to do an asymmetrical butterfly ratio roll"?
>
> My suggestion: Save your money. Instead, spend it on some good books
> (eg. Natenberg), watch the free videos at the CBOE (especially Dan
> Sheridan's), check out the educational materials that your broker
> provides, read forums such as this one -- in short, learn the basics.
> If you understand vertical spreads, you won't need to memorize the
> details of how and when to do an "asymmetrical butterfly ratio roll"
> versus a "symmetrical iron condor non-ratio roll", or what have you.
> You'll just look at what you have now, decide whether you still want it,
> figure out what you'd rather have instead, and then make the appropriate
> changes. No fancy names required.
>
> At least, that's my $0.02 worth...
>
> Martin
>
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