Wednesday, March 3, 2010

Re: [TheOptionClub.com] Re: butterflies

 

James,
 I completely agree with you James. I am a student of Charles Cottle no offence guys. If you are truly serious about learning what type of position you have on, Charles is the way to go. It took me a while to figure out how Charles dissect his  complex position into butterflies which enables you to figure out what to manage or pay particular attention to. IF you want to become a butterfly exact, read Charles book or join the forum. By the way, Charles site has some good material and some webinars for free.
 
Thanks Guys
Manny
 
----- Original Message -----
From: JP
Sent: Wednesday, March 03, 2010 3:44 AM
Subject: [TheOptionClub.com] Re: butterflies

 

Charles Cottle provides a comprehensive analysis of Butterflies and their variants which include; Condors; Skip Strike Flies and Broken Wing Flies; along with the concept of the Butterfly Pricing Arc which for me 'switched the light on' when it came to understanding these trades.

In addition to using them as a possible trading strategy, Charles also uses them to analyse / dissect the risk inherent in more complex positions.

The concepts are not necessarily easy to understand at first; but with a little bit of elbow grease can quicly become second nature.

Cheers
James

--- In OptionClub@yahoogroups.com, "Bill Fletcher" <wnfletcher@...> wrote:
>
> I have Saliba's book on spreads, which is pretty good. The book discussed
> here doesn't get good reviews. It is one of the few trading books I don't
> have!! Most of these books tell you what to do when you are in the huddle,
> but not when the pass rush is on, and you are looking for a receiver. (Not
> a bad analogy for an Englishman!) We don't need more fancy spreads - they
> just move the lines around a bit on the risk graph. What we need is a sense
> of "I am in a calendar, and my deltas have gone from 5 to minus 62, and I am
> sliding into the abyss. What do I do?" That kind of stuff. I may sound
> like I know what I am talking about, but I am lousy at it. There is a book
> called "Trading Option Greeks", which I left in the supermarket cart because
> it was my "standing in line" book and I forgot it. I am currently back on
> Augen's Volatility Edge, which I didn't really understand the first time
> through. Do any of you guys out there have an opinion on these?
>
>
>
> Bill
>

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