Is your entry pricing good or bad on your butterfly options trade? How do you make that decision? John Locke explains how he looks at his butterfly pricing to understand the conditions he is entering in without even looking at the market.
Click here or in the video to learn how!
Let’s pretend for a minute that I want to enter a trade. I’m looking at doing a 50/40 broken wing butterfly. About zero Delta to one Delta.
I’m looking at my mid prices and I kind of want to get an idea if the mid pricing represents a good value for this trade?
One of the things we could do do is the synthetics pricing with the equivalents and so forth. But what I find a lot of times even more powerful is understanding what this position has been doing over time.
Listen in to get more ideas on how to find out if your entry pricing is good or bad with this excerpt from a GO Ask A Trader webinar!
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