At this point it looks like a max loss GLD Iron Fly. Still has 14 days to expiration so I am hopeful that the price can come back to 119 or higher to mitigate a full loss on the trade. I was originally an Iron Condor that was converted to Iron Fly. Time will tell how this plays out.
Comments
JamesPowell
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So what has to actually happen for this to work out in your favor trader?
Turbo_Tech
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@JamesPowell, The price has to be much closer to the midpoint, which it is not. An iron fly option is a combination of 4 options contracts that if the stock at expiration is right on the midpoint all contracts cancel themselves out and you get to keep all premium that is promised by the option buyer.
JamesPowell
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@Turbo_Tech, looks like its below your target so what if you purchase a put as insurance? Would that help you any at this point?
Turbo_Tech
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@JamesPowell, It is a managed risk trade, I have already made an adjustment to convert the Iron Condor to an Iron Fly by moving the call side down.
JamesPowell
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@Turbo_Tech, i am asking for my own curiosity. I have traded options for a long time. Never done anything like this. Its interesting and i was curious.
Turbo_Tech
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@JamesPowell, Then allow me to invite you to the options chat we have here on tradeview. Are you familiar with TastyTrade.com? The chat room here is called TastyTrade and we are options traders that adhere to the principles of selling options premium in the style of Tom Sosnoff (one of the men behind the Think or Swim trading platform that is now owned by TD Ameritrade). BTW I am new margin and this is one of my first margin trades.