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Lord DarkHelmet

09/06/12 3:55 PM

#2655 RE: Fossil-Fuel #2654

Yeah...that is how I read your post.

Butterflies are a good non-directional strategy as well. You could even use them for an upside directional move. However, they are better suited for a downside directional move because of the initial net Vega on the overall position.

It is best to have your net delta and your net vega going in the same direction. One hedges the other, but never to a full degree.

Like I was saying in my previous email....Upside directional moves can better served with a Calendar Spread, because of the above reasons.

Another great strategy for upside directional bias is a Call Diagonal spread. It is similar to a Covered Write in its dynamics, but takes a lot less capital.