This is how I looked at the end of the day today. FYI: I bought 1 extra put to neutralize the delta when I opened up the trade.
Mark Sebastian's blog
I have had several people ask me lastly about whether it is a good time to get long straddles. I think with the VIX below 30 they start to get interesting. Here is what I would say.
I traded GM for a period of time in 2006 and 2007. On interesting thing of note: There was a MASSIVE amount of open interest on the Jan 2009 5 and 10 puts and likewise in 2010.
You may recall that a few days ago I spoke about a YHOO play. I did this because I thought they might still be a target of MSFT.
Well, the good news is that the VIX held. If you are long Vega, then you are in good shape. However, please don’t let this stop you from trading short Vega spreads.
One of the best ways to manage a broken wing butterfly is using the delta. It is actually pretty simple. Set a specific return in mind, for a BWB I would be shooting for at least 50%.
I have been reading several threads from Optionetics discussing BWB's (Broken Wing Butterflies). They act as if they are one of most "powerful" strategies.
Well, we blew through 30, where are we heading now? Seriously, we might bottom out below 20, don’t be afraid to sell vol.
Tomorrow could be a very interesting and telling day. If the VIX breaks 30, I would be shocked if we didn’t march down to 25 or lower.
I’m getting sick of being so right all the time. I would not be shocked if we break through 30 today. The next step would be 25 and then on to 19 from there. How would I approach this period?