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Tuesday, October 26, 2021
Sunday, October 3, 2021
Butterflies , Condors and Iron Spreads
Butterfly means 3 strikes with either calls or puts (1:2 and 2:3)
Condor means 4 strikes either calls or puts (1:2 and 3:4)
Iron means both puts and calls with 3 or 4 strikes --
( Type A 1:2 call and 2:3 put Iron Butterfly
Type B 1:2 call and 3:4 put Iron Condor
)
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Long call Butterfly
composition - 2 call vertical spreads
a. bull call spread (debit)
b. bear call spread (credit)
Buy 1 X 60.00 call at 4.10
Sell 2 X 65.00 calls at 2.00
Buy 1 X 70.00 call at 0.85
Total 0.95 net debit
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Iron Butterfly.
compostion - 2 ways to look at it
. bull put spread (credit) + bear call spread (credit)
. short straddle (credit) + long strangle (debit)
Buy 1 X 60.00 put at 0.60
Sell 1 X 70.00 put at 3.80
Sell 1 X 70.00 call at 4.10
Buy 1 X 80.00 call at 1.05
Total 6.25 net credit.
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Long call Condor.
Composition - 2 call vertical spreads
a. bull call spread (debit)
b. bear call spread (credit)
Buy 1 X 75.00 call at -9.00
Sell 1 X 80.00 call at 5.90
Sell 1 X 85.00 call at 3.60
Buy 1 X 90.00 call at -2.00
Total -1.50 net debit.
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Iron Condors
. bull put spread (credit) + bear call spread (credit)
. short strangle (credit) + long wider strangle (debit)
Buy 1 X 60.00 put at 1.30
Sell 1 X 65.00 put at 3.10
Sell 1 X 70.00 call at 2.30
Buy 1 X 75.00 call at 1.10
Total 3.00 net credit.
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