Butterfly Adjustment

Discussion in 'Options' started by met1989, Jul 24, 2019.

  1. met1989

    met1989

    hey how can i adjust a butterfly to make it risk free after a while holding it ?
     
  2. Robert Morse

    Robert Morse Sponsor

    Close it.
     
    ffs1001, Adam777, drmark27 and 9 others like this.
  3. met1989

    met1989

    my question is adjusting a butterfly always making the risk bigger on the other side ?
     
  4. Robert Morse

    Robert Morse Sponsor

    You can make an unlimited number of adjustments that can increase or decrease risk but the ONLY answer to your question is what I typed.
    One of the advantages of spreads is to limit risk. If you then feel the need to over hedge, you had no confidence in the original trade and it should be closed or reduced, not hedged, IMO.
    You need to take risk to make money.