Are broken wing butterflies the best options strategy ever?

Discussion in 'Options' started by trendisyourfriend, Sep 15, 2021.

  1. Hi guys, I'm new to options trading. I'm looking at the October 15 expiring 270/ 290/330 broken wing butterfly for UPST with calls. This is a credit spread. The mid is -1. The max payout is $1960 and the max loss is $2040.

    The current price of UPST is $266.52.

    Would you say a broken wing butterfly credit spread is better than a bull put spread? With a broken wing butterfly, you receive a credit AND you can make money if the lower leg long call is ITM.

    So, in theory, you could make $100 credit plus $1960 if the stock reaches 290 at expiration.

    What do you guys think?

    Thanks
     
  2. taowave

    taowave

    If you arent delta hedging,Ild go with the 270/290/320 for even or MAYBE buy .50 320 and .5 330 for a credit (325 upper wing)..
     
    trendisyourfriend likes this.
  3. destriero

    destriero

    Canadians are prohibited from vol-trading.
     
    FibonacciNinja likes this.
  4. But only a hoser would be aboot trading only D1, eh?
     
    taowave and destriero like this.