Are broken wing butterflies the best options strategy ever?

Discussion in 'Options' started by trendisyourfriend, Sep 15, 2021 at 10:24 AM.

  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.