There are 3 important things to understand while trading this strategy:
1) Initial size of the Wings
2) Risk Management
3) Adjustments
(2/n)
THREAD ON IRONFLY
These days the most preferred strategy for option sellers due to improved margins is IRONFLY. It's essentially a short straddle with long strangle. Long strangle acting as 'WINGS', which help in capping the unlimited risk associated with a short straddle.(1/n)
There are 3 important things to understand while trading this strategy:
1) Initial size of the Wings
2) Risk Management
3) Adjustments
(2/n)
Now on to ADJUSTMENTS. When the index moves it is important to also move with it in this strategy. This is because if we don't then the initial credit received will reduce drastically. (6/n)
More from Sarang Sood
More from For later read
1. The death of Silicon Valley, a thread
How did Silicon Valley die? It was killed by the internet. I will explain.
Yesterday, my friend IRL asked me "Where are good old days when techies were
2. In the "good old days" Silicon Valley was about understanding technology. Silicon, to be precise. These were people who had to understand quantum mechanics, who had to build the near-miraculous devices that we now take for granted, and they had to work
3. Now, I love libertarians, and I share much of their political philosophy. But you have to be socially naive to believe that it has a chance in a real society. In those days, Silicon Valley was not a real society. It was populated by people who understood quantum mechanics
4. Then came the microcomputer revolution. It was created by people who understood how to build computers. One borderline case was Steve Jobs. People claimed that Jobs was surrounded by a "reality distortion field" - that's how good he was at understanding people, not things
5. Still, the heroes of Silicon Valley were the engineers. The people who knew how to build things. Steve Jobs, for all his understanding of people, also had quite a good understanding of technology. He had a libertarian vibe, and so did Silicon Valley
How did Silicon Valley die? It was killed by the internet. I will explain.
Yesterday, my friend IRL asked me "Where are good old days when techies were
Where are good old days when techies were libertarians.
— Cranky (@rushingdima) January 9, 2021
2. In the "good old days" Silicon Valley was about understanding technology. Silicon, to be precise. These were people who had to understand quantum mechanics, who had to build the near-miraculous devices that we now take for granted, and they had to work
3. Now, I love libertarians, and I share much of their political philosophy. But you have to be socially naive to believe that it has a chance in a real society. In those days, Silicon Valley was not a real society. It was populated by people who understood quantum mechanics
4. Then came the microcomputer revolution. It was created by people who understood how to build computers. One borderline case was Steve Jobs. People claimed that Jobs was surrounded by a "reality distortion field" - that's how good he was at understanding people, not things
5. Still, the heroes of Silicon Valley were the engineers. The people who knew how to build things. Steve Jobs, for all his understanding of people, also had quite a good understanding of technology. He had a libertarian vibe, and so did Silicon Valley
the whole point of Dunks was you could go cop them at VIM whenever you wanted for $65. this shit is like having to enter a raffle to buy milk.
like seriously why not make a ton more of them if they're gonna be so sought-after? they land at outlets? so? nike still makes money off that.
the only reason to keep making them so limited is that they KNOW all that matters is the profit on the flip and if they were readily available FEWER people would want them, not more
the whole system is super broken, but it's just gonna go the way it goes, because at this point it all caters to the secondary market. the only reason Nike can sell Jordan 1s for $200 is because the people buying them can flip them for $500
adjusted for inflation, a $65 AJ1 in 1985 is like $160—and modern-day AJ1s are made from cheaper materials in factories staffed by cheaper workers. they don't HAVE to be $200 retail. but the secondary market nuked the whole concept of what sneakers are "worth"
\U0001f91e ONLINE RAFFLE is available from @bodega for the upcoming "UNLV" Nike Dunk Low Retro. Open until 5 PM ET on 2/16.
— Kicks Deals (@KicksDeals) February 15, 2021
\u27a1\ufe0f\u27a1\ufe0f https://t.co/JxJlyPuJVo pic.twitter.com/zenWOCDg4L
like seriously why not make a ton more of them if they're gonna be so sought-after? they land at outlets? so? nike still makes money off that.
the only reason to keep making them so limited is that they KNOW all that matters is the profit on the flip and if they were readily available FEWER people would want them, not more
the whole system is super broken, but it's just gonna go the way it goes, because at this point it all caters to the secondary market. the only reason Nike can sell Jordan 1s for $200 is because the people buying them can flip them for $500
adjusted for inflation, a $65 AJ1 in 1985 is like $160—and modern-day AJ1s are made from cheaper materials in factories staffed by cheaper workers. they don't HAVE to be $200 retail. but the secondary market nuked the whole concept of what sneakers are "worth"
