NaughtyPines

OPENING: EEM NOV/JAN 36/40/40/44 DOUBLE DIAGONAL

AMEX:EEM   ISHARES TRUST MSCI EMERGING MARKETS FUND
... for a 1.38/contract credit.

Metrics:

Rank/Implied: 68/29
Max Profit on Setup: 1.38/contract
Max Loss/Buying Power Effect on Setup: 2.62/contract
Delta: -9.51
Theta: 2.06

Notes: I've done a few of these before. The way I look at them is that they offer the flexibility of a naked, while keeping your risk defined. An additional small benefit is that you don't have to leg in and out of the longs if you want to reuse them, saving a smidge in fees, assuming that you don't have to adjust the long strangle aspect too much to keep your risk where you want it. Will look to take profit on the short straddle at 25% and then reuse the long strangle ... .
Trade active: Taking a smidge of profit here and rolling out "as is" to Dec for a 1.05/contract credit; scratch at 2.43.
Can see why this looks good to me; in checking my log every one of these (I call this a diag IronFly and use dubl diag when shorts are split) with shorts at max ext has finished at a slight positive scratch after expenses or better with most of them making the 25% and a few better.
Reply
NaughtyPines Tom1trader
@Tom1trader, I like these quite a bit, particularly as compared to a static setup like an iron fly or iron condor since they're more flexible and particularly in instruments that I'm in and out of a lot anyhow.
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out