Broken fly

Discussion in 'Options' started by colonial dr, Oct 1, 2012.

  1. Along with my day trading, I do weekly cme options using standard or broken butterflies. I've always done standard butterflies (with often unequal prices, so sometimes broken) since they always work (I never needed to fix it), and my options trading is not my focus anyways-

    I'm finding that over the long term, a broken fly with the middle option equal to the lower or upper option (bear or bull) is most effective over the long term. Example-

    Lower $20 Mid $20 Upper $30

    I added the downside and upside profit, and found that the sum is greater than the downside and upside of a standard fly. So I'm thinking over a few trades, this is much better.

    Where am I going wrong? :confused:

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