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Adding 2nd 3rd

1 reply, 2 voices Last updated by John Locke 1 year, 9 months ago
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    • #15424

      John Locke
      Keymaster
      @john-locke
      Going to The Trading Triangle LIVE 2016Locke In Your Success CoachAPM2Trade JournalsUltimate Income Trader Workshop

      Let’s say the reference point is 1000, the RUT moves to 1035, and causes the delta theta ratio to be greater than 1.5/1.

      So I roll up the 950/1000/1050 20 points to 970/1020/1070  and my reference point is still 1000 right?

      That would be correct. The only time the reference point would change would be in the event of a roll back.

      The next day the RUT moves up to 1045 and here is my question: Do I now add the 2nd 3rd  which would be another 970/1020/1070 since that I am 40 points over the reference point?

      Yes, you would add the second third but the second third is always added 20 point higher than the 1st third so if you have 1 butterfly that you rolled to 970/1020/1070, with a reference at 1000, then the second third would be added with the asset over 1040 and it would be 990/1040/1090 

    • #15421

      James Hooper
      Participant
      @jameshhooper@gmail.com
      Points: 212
      Rank: Newbie

      Let’s say the reference point is 1000, the RUT moves to 1035, and causes the delta theta ratio to be greater than 1.5/1.

      So I roll up the 950/1000/1050 20 points to 970/1020/1070  and my reference point is still 1000 right?

      The next day the RUT moves up to 1045 and here is my question: Do I now add the 2nd 3rd  which would be another 970/1020/1070 since that I am 40 points over the reference point?

       

      Thanks!

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