Short Straddles are extremely neutral positions. They offer a very low chance of a very large gain and expose the trader to unlimited risk of loss in both directions of potential price movement. Short Straddles are high risk trades with a large margin requirement.
Butterfly trades are used for a neutral price outlook with very minimal movement expected over the duration of the trade through expiration. The “sweet spot” is where the trade expires at the exact same underlying price as at open.
A short Strangle is a neutral position for a trader who is very certain of their analysis and outlook. Profits are relatively high because of the undefined risk, but so too are the losses. Losses quickly accumulate as the underlying price moves away from…
Iron Butterfly trades are used for a neutral price outlook with very minimal movement expected over the duration of the trade through expiration. Compared to an Iron Condor, Iron Butterfly trades have higher defined maximum potential profits, though this…
Closed it out to take some profits.
Another very small position to trap a black swan event in rare earths given a retaliatory move by China.
Expecting further falling apart of the trade negotiations. With volatility still low overall, putting a small long position on the markets to cash in when it sells off further.
Finally got just a little bit of increased volatility to make selling premium on market indices appealing. Expecting tech to…