SPX Jul 17 Broken Wing Butterfly

SPX Jul 17 Broken Wing Butterfly

Time for a new trade in SPX. Another broken wing butterfly trade expiring on Jul 17th with 28 days to expiration. The eight lot of puts are at 1950/1930/1870. The 1930's were about a -22 delta. The trade was put on with a little smaller credit than I like, but it's...
The Big Fish are Eating the Smaller Fish

The Big Fish are Eating the Smaller Fish

According to Crain's Chicago Business, a New York private-equity firm is planning to take control of OptionsHouse LLC and TradeMonster Group Inc. by investing in both of them and then merging the two companies. General Atlantic LLC is purchasing OptionsHouse from...
Option Synthetics Primer

Option Synthetics Primer

Let me ask you a question. Which position is more risky? Selling a Covered Call Selling a Naked Put Most people would say selling a Covered Call is a great investment strategy, but selling a Naked Put is terribly risky. If you understand Option Synthetics, you'll know...