Friday, 23 March 2018

RELCAPITAL STRANGLE STRATEGY ROCKS


50 % RETURN IN YOUR INVESTMENT 
RELCAPITAL STRATEGY GIVEN ON 23 FEB
2018 POST
"RELCAPITAL 440 PUT BOOKED PROFIT @
44 BUY  GIVEN  @ 12"
"RELCAPITAL 480 CALL CLOSED AT 0.70
BUY GIVEN @ 17"

PROFIT FROM PUT= 24000
LOSS FROM CALL= 12187
11813 PROFIT IN 21750 INVESTMENT 

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RELCAPITAL STRANGLE STRATEGY BOOK PROFIT


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Friday, 16 March 2018

Iron Condor Vs Iron Butterfly? Which Is better?


These are both short Vega trades, meaning that they benefit from volatility lowering, however, the structure is different and the pros and cons of each are different.
The Iron Condor is perhaps the most popular option spread trade. The structure is selling a call vertical and a put vertical out of the money, usually by several strikes. This is what you might call a “strangle”.
Which is Better?
The Iron Condor would be better than the more narrow strike Iron Butterfly. The downside of using an Iron Condor is that when it does go against you, it is more difficult to repair and/or you can lose more money because you took in less premium, by selling options that were further from the money.
Overall, though, it does have a good probability of profit greater than that of the Iron Butterfly.
The Iron Butterfly is also a trade that benefits from lowering volatility. It is structured by selling an at-the-money call vertical and an at-the-money put vertical with varying long wing widths.
Risk-To-Reward
The Iron Butterfly has more narrow structures than the Iron Condor, however, it has a better risk-to-reward, because your return can be so much higher on-the-money at risk than with the Iron Condor.
This is because you received more premium selling the at-the-money options. Because it has this greater risk/reward, the Iron Butterfly can be put on in a wider range of markets, both lower volatility and higher volatility.
Volatility
Even though it is short volatility, it still performs well, even in lower volatility markets because of the risk reward.
Of course, both of these trades, require that the price stay inside of a range for the trade to be profitable. The Iron Condor gives you more room and the Iron Butterfly gives you less room for the price to roam. However, overall in most markets, I preferred the Iron Butterfly, because of the increase risk reward.