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Trading at these RVX levels

6 replies, 3 voices Last updated by Joseph Cano 1 year, 5 months ago
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    • #15823

      Joseph Cano
      Participant
      @jcano6032@yahoo.com
      Points: 31
      Rank: Newbie

      Thank you John and Kevin !!

    • #15809

      Kevin Dempsey
      Participant
      @trading@stoktok.com
      Points: 126
      Rank: Newbie

      John you mentioned OV has not been functioning properly with the high IV.  Is the unusual dip inside and bulges outside the tent in the pic what you’re referring to as well as the occasionally positive gamma and low delta?  Is was going bring this up for the Q&A on the BB with SMB and if you’d rather elaborate there that’s cool.

      • #15819

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

        Kevin, It’s good that you noticed that the t+0 is not realistic. The good thing about the BB in this environment is that doesn’t matter. By that I mean there is no way you’ll hit a Delta Theta ratio issue, nor a Delta issue unless the market settles, a lot. This being the case, you’ll solely be using price points for adjustments and the analytical software is not needed.

    • #15808

      Kevin Dempsey
      Participant
      @trading@stoktok.com
      Points: 126
      Rank: Newbie

      Hey Joseph, good choice on the paper trade. I think a newb would have found this environment much too intense for real money.

      I’m new to the BB although have some experience trading income strategies so after reviewing all the materials numerous times and backtesting a few practice trades I decided to go ahead and open my first live trade about 6 weeks ago.  Just in time for the explosion in volatility and what seemed like near constant adjustments.  It was a bit grueling and nerve wracking as I wasn’t entirely confident in my actions.  In the end I was very happy with the result and am onto the second trade which is doing well so far.  It’s been an excellent learning experience and I’m glad I could successfully navigate the worst (hopefully) the market could throw at me for my first trade in the system.

      Good luck!

    • #15789

      Joseph Cano
      Participant
      @jcano6032@yahoo.com
      Points: 31
      Rank: Newbie

      Thank you John !! Yes, I already have a paper trade on. This environment will provide me with valuable insight on the behavior of the Bearish Butterfly.

    • #15786

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

      I’m still trading them and I know some other more experienced traders who are as well but keep in mind we’ll generally trade differently than the guidelines in this type of environment. In addition Option Vue has not been functioning properly at these IV levels so we need to make educated guesses on certain parameters.. If you’re brand new  then I’d suggest you run some real time paper trades and wait till the market settles out some OR you’re comfortable trading the environment before committing capital

    • #15785

      Joseph Cano
      Participant
      @jcano6032@yahoo.com
      Points: 31
      Rank: Newbie

      Hello everyone !! I’m a Newbie and just bought the Bearish Butterfly course 2 weeks ago. My question is: are you guys still trading and initiating new trades in  the Bearish Butterfly with RVX between 60-70 ? With all the wild movement it seems like we would have to adjust a lot more often.

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