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2021.07.14 – SESSION 25– GO ASK A TRADER

9 replies, 6 voices Last updated by Jenica Locke 2 weeks, 3 days ago
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    • #17664

      Jenica Locke
      Keymaster
      @Holzschuh8Jenica

      The recording of the GO Ask a Trader session from earlier today is ready to view. Enjoy!

    • #17646

      Lee Shuck
      Participant
      @Lee.Shuck@LeeShuck.com
      Points: 37
      30 Day Affirmation Challenge
      Rank: Newbie

      Hi John,

      I was reviewing a possible entry for RUT Sept 17 expiry on Tuesday 7/6 when RUT was trading around 2270. I noticed the only strikes trading below 2200 were at 50 point increments.  I contacted TOS support and they said they could request addition of 10 point increment strikes from the exchange. The strikes did show up on a subsequent day.  Is this something you see frequently and how do you deal with?  I was hesitant to place a live trade since I did not want to be constrained to 50 point increment strikes for any adjustments.

      Thanks!

    • #17644

      E S
      Participant
      @storminator@telenet.be
      Points: 92
      Rank: Newbie

      hi John,

      Not sure I can join the session live (am in Europe) but will listen to recording.

      Am new here so my question is probably quite basic:

      I watched “the bull” video and the setup starts 65 DTE, however with options premium decay fairly flat till ~35 DTE, why go out to 65 DTE?

      The only reason I can think of is that we are in a (long) bull market so are anticipating RUT to go higher (a little) during the first 30 days in the trade, which then, despite little premium decay, provides a “cushion” to the trade in case RUT would drop (within reason)?

      Or are there other reasons?

      thank you!

    • #17636

      Dan Shaw
      Participant
      @dkshaw@gmail.com
      Points: 843
      Rank: Freshman

      Hi John,

      Can you briefly touch upon the topic of partially removing butterflies on a trade?

      1. When would you consider removing some?
      2. What are the pros/cons of doing so?
      3. After you have reduced a position and you either roll up or back, do you re-enter the trade with the same amount of butterflies or the original amount at the beginning of the trade?

      Thanks as always.

      • #17658

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

        Is there a specific trading strategy you are referring to such as M3 butterfly/call or M3.4u?

      • #17659

        Dan Shaw
        Participant
        @dkshaw@gmail.com
        Points: 843
        Rank: Freshman

        Mainly for the M3 John, but I would be curious about the M3.4U also!

    • #17621

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

      Ron van Steenoven  Trade Review M3.4u

    • #17537

      Dan Shaw
      Participant
      @dkshaw@gmail.com
      Points: 843
      Rank: Freshman

      Hi John,

      I’ve heard from you and others in the community talking about how butterflies right now are “unusually cheap”.  Paul on your latest successful trader of the month determined that 9-day butterflies are lower in price than historical 30-day. (Amazing interview with him by the way.)

      I am also seeing that there is not much P/L movement in the first ~30 days or so of my M3/M3.4U trades, which has me interested in shorter timeframes.

      Can you help clarify a few basic fundamental questions I have regarding this:

      1. What does “cheap” really mean? Does it mean you can purchase more butterflies with the same amount of planned capital? Anything else that this indicates?
      2. Has there ever been a time in your trading career where a butterfly was too expensive to trade with?
      3. How do you calculate in ONE/OV how much a single symmetrical butterfly and broken wing butterfly costs?
      4. Anything else around this topic you could share would be much appreciated.
      • #17622

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

        Thanks for the question Dan!

    • #17513

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      We highly encourage PRO, GO, and Trading Performance members to post their questions and topics to be discussed in the REPLY TO text box below at least 48 hours in advance of this meeting.

      Click here if you would like to request a mini coaching session.

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