Chuck Moore
Member
Hi Rick,
I am very aligned with your concern about Gamma and aggressively reducing risk. That makes this trade very attractive for my risk tolerance, so thank you very much for sharing. I have a couple of questions if you don’t mind.
1. On the first trade example you showed, it looks like it started out as your initial Unicorn Trade and then added in the Risk Reversal. On other examples you just had the Risk Reversal with the butterfly and didn’t have the ATM put debit spread to start. What is your reasoning for whether or not to use the ATM put debit spread?
2. On the example that is 7 days old (OCT 11) you said you’d “flip it” if the market reverses. Not sure of whether the reversal you meant was up or down and what does flip it mean?
3. Do you have a trigger for reducing the put side credit spread when the market moves down?
Thanks for your time,
Chuck
I am very aligned with your concern about Gamma and aggressively reducing risk. That makes this trade very attractive for my risk tolerance, so thank you very much for sharing. I have a couple of questions if you don’t mind.
1. On the first trade example you showed, it looks like it started out as your initial Unicorn Trade and then added in the Risk Reversal. On other examples you just had the Risk Reversal with the butterfly and didn’t have the ATM put debit spread to start. What is your reasoning for whether or not to use the ATM put debit spread?
2. On the example that is 7 days old (OCT 11) you said you’d “flip it” if the market reverses. Not sure of whether the reversal you meant was up or down and what does flip it mean?
3. Do you have a trigger for reducing the put side credit spread when the market moves down?
Thanks for your time,
Chuck