Posts Tagged ‘Butterfly Spread’
Butterfly Option Strategy Basics
The Butterfly Spread Not sure how a butterfly works or makes money? No problem. This video is in response to a question from a member. He wanted to know how the trade made money and why he had to exit the trade to get his profit. The answer to the second part of the question…
Read MoreWhy Trade a Butterfly Option Over A Calendar Spread Option?
Calendar Spread Option VS Butterfly Spread Option? Many readers liked the MCD butterfly option I posted on Friday. Here’s the link if you missed it: http://optiongenius.com/blog/mcd-butterfly/ Calendar Spread Strategy One reader posted an excellent comment that I decided to create a new post about. Here is what he asked: As of Friday’s close, the 75…
Read MoreButterfly Option Trading: MCD
Butterfly Option Strategy for MCD Just added a new option trade in my personal portfolio today. It’s a classic butterfly spread on MCD – McDonald’s. The trade was Buy 2 April 70 puts, Sell 4 April 75 Puts, Buy 2 April 80 Puts for a debit of 3.11 per spread or a total cost of…
Read MoreOption Butterfly Spread Being Used As A Hedge
Option Butterfly Spread: A friend emailed me the following. It was taken from an email commentary sent out by OptionsXpress.com “The biggest options trade in the market so far Wednesday (1-12-11) is a block of 80,000 February 121 puts on the SPDR 500 Trust (SPY). The so-called “Spyders” is an exchange-traded fund that holds all…
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