Re: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?]

 

I agree with you James. Adding the 145-165 box, 145c -165c +165p
-145p to the guts condor 140p -145c -165p +170c gives the more "user
friendly" iron condor 140p -145p -165c +170c. It would seem that
Michael could have transformed the 4/29 position directly to an iron
condor and put ladder instead of a guts condor and put ladder. Since
I no longer have the option prices for the 4/30 closing I don't know
what the exact difference would be to the P/L graph but I doubt there
would be much. In any case, I had no idea that the original risky
position could be transformed to a low risk condor after the Friday
selloff. Do you know any general techniques for discovering such
opportunities?

On Mon, 03 May 2010 17:07:24 -0000,"JP" <jamesbparker999@yahoo.co.uk>
wrote:

>Ricky
>
>It's not a quible, if you cannot buy the box for $20.00 or less, then you simply wouldn't do it, but it doesn't prevent you removing the box mentally, and managing the position in it's most simplified form.
>
>Might be a useful excercise to get a MM quote for the box.
>
>Cheers
>James
>
>--- In OptionClub@yahoogroups.com, Ricky Jimenez <rickyjim@...> wrote:
>>
>> A small quibble here. The 45-65 box's bid/ask is 19.68/20.35. If you
>> could get it for $20 then the P/L expiration graph of the simplified
>> position would be identical to the one Vikas posted.
>>
>> On Sat, 01 May 2010 17:36:49 -0000, "JP" <jamesbparker999@...
>> wrote:
>>
>> >Michael
>> >
>> >Unfortunately, I cannot provide a graph for a couple of days as we have a long weekend here in the UK; but it may be easier to follow if you bought the 145/165 box for $20.00 to simplify the position.
>> >
>> >This would leave;
>> >
>> >-1c 165 / +1c 170
>> >+1p 130 / +1p 135 / +1p 140 / -2p 145
>> >
>> >Net Credit $4.89
>> >
>> >Cheers
>> >James
>> >
>> >
>>
>

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