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Archive for the ‘Butterfly Spread’ Category

Best Option Strategy

If you’re new to our site, make sure to watch our FREE Online Option Income Trading Video by Going Here. Thanks for visiting! What is the ‘best option strategy’? Of course this could be viewed as a silly question as the ‘best option strategy’ is purely a matter of opinion as one trader will no [...]

Vertical Spread

An option vertical spread is the sale of one option and the purchase of another nearby option together as one ‘spread’. It is termed ‘vertical spread’ because if you were to look at an option chain that listed the all the available options – as well as the option sold and the option bought – [...]

Option Selling

The first time someone tried to explain the concept of option selling to me I had a near brain meltdown. Okay, maybe that’s a little over dramatic – but it was something that was a bit difficult to wrap my head around – and after coming to understand the concept and then trying to explain [...]

Iron Condor

The Iron Condor option spread trading strategy is a great way for investors to generate a decent monthly cash flow without having to site behind the computer all way watching every up and down tick of the market. The iron condor is a theta positive option selling trade. What the iron condor trader is hoping [...]

Option Spread Trading

Two of the most talked about and popular option spread trading methods are the iron condor spread and the credit spread – also sometimes titled the vertical spread. Actually, the iron condor is the credit spread – just times two. The iron condor spread strategy is composed of two credit spreads – one on each [...]

Condor Spread

While many iron condor traders perhaps don’t realize this – when they employ a popular and basic iron condor adjustment strategy of ‘rolling’ they are in fact placing a ‘condor spread’ – which is a spread all unto itself (and different from an ‘iron condor spread’) A condor spread is a four legged option spread [...]

Condor Spread

The Condor Spread (as well as the Iron Condor) is in the same ‘family’ as the butterfly spread trade – however some differences are as follows: A Condor is a combination of a debit spread and a credit spread – which are all either calls or puts – all at different strikes. The Iron Condor [...]

Straddle Spread

One could argue that an Iron Butterfly is actually just a Straddle Spread. When I first started trading option spreads, the butterfly spread always seemed to be a mysterious, complicated, and difficult to understand option trading strategy. And – rather than take the time to sit down and really try to understand what this option [...]

Butterfly Strategies

There are a number of different option butterfly spread strategies available to option traders – most of which could be considered more ‘monthly income’ generating strategies – the others could be considered more speculative trades. These strategies include – A long butterfly, call or put butterfly – where all the options which construct the position [...]