Strategies

Optionist.net
Mentoring
DE | ENG

Strategies

Flyagonal

The source strategy and the Optionist variant are deliberately separated here.

Original

1. Original strategy

The original setup consists of a call broken wing butterfly above price and a put diagonal below price.

Typical mechanics use short legs around 8 to 10 DTE and a longer leg with roughly double the duration.

According to the source, the profit target is roughly 10 percent of max loss, and the typical hold time is only about 3 to 5 days.

Original: call butterfly + put diagonal

Original: call butterfly + put diagonalThe line shows the result along the labelled price axis. Assumptions and legs are listed below.Model P/L (USD/point)-100010056005800600062006400Underlying at short expiry (USD)
Valued after 10 daysModel credit: 6.7 points
  • Long Call ATM −20 / 10 DTE
  • 2× Short Call ATM / 10 DTE
  • Long Call ATM +100 / 10 DTE
  • Short Put ATM −100 / 10 DTE
  • Long Put ATM −120 / 20 DTE
Illustration of the legs listed here. Reference ATM 6,000; long put has 10 additional DTE. Not a reconstruction of a specific original trade. Hypothetical Black-Scholes model, not live quotes or a backtest: constant IV 20%, zero rates/dividends, entry spot 6000. Long legs retain their remaining time value. Break-even and curve height change with IV, skew and entry price. For a standard contract: P/L × 100 USD. Fees excluded.

Open original source

Optionist

2. Optionist variant

The center uses 2 short calls around delta 50, plus a long call at ATM minus 6, a long call at ATM plus 5, and a short put at ATM minus 12.

Suitable underlyings are mainly SPY, SPX, and XSP. The setup is better suited to a more volatile market with elevated IV, roughly from a VIX above 20.

SPY setup

  • Long 1x call ATM-6
  • Short 2x calls delta 50 / roughly ATM
  • Long 1x call ATM+5
  • Short 1x put ATM-12

P/L Diagram

Optionist variant

SPY: Optionist variant

SPY: Optionist variantThe line shows the result along the labelled price axis. Assumptions and legs are listed below.P/L per share (USD)-20010570588600605620Underlying at expiry (USD)
ATM: 600 USDExample credit: 2 USDBE: 586 USD
  • Short Put ATM −12
  • Long Call ATM −6
  • 2× Short Call ATM
  • Long Call ATM +5
Same expiry for all legs and assumed net credit 2 USD. Profit at ATM 600 is 8 USD/point; above 605 it is 3 USD/point. Left-side short-put risk is not capped by a long put. The upside profit depends on the entry credit. × 100 per standard contract, excluding fees.

The short put drives the left tail, the profit center sits around the two short calls, and the upper call wing leaves a small residual value on the right.

Backtests

Optionist variant

The Option Omega evaluations show the overall curve, year-by-year results, and outcome distribution.

Option Omega backtest of the Flyagonal strategy with equity curve and metrics Year-by-year Flyagonal backtest results with returns per year Distribution of individual trade outcomes in the Flyagonal backtest