NaughtyPines

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

AMEX:EEM   ISHARES TRUST MSCI EMG MKTS ETF USD DIS
... 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.
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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.
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