Butterfly on financials

Discussion in 'Options' started by xandman, Jan 11, 2014.

  1. xandman

    xandman

    Attached is a screenshot of my P/L. It does seem this trade structure is a total looser. I'm don't recall what I was seeing when I first put the trade on but it can't be any different from this.

    The underlying would have to go to $80 or $100 to keep 100% of the premium.

    I'm played with the P/L evolution at different times and vol, there's no redeeming factor in this trade.

    I owe you guys a beer.
     
    #11     Jan 11, 2014
  2. FXforex

    FXforex


    You have the risk:reward reversed, it would not be 1:5. It would depend on the position and be something like 5:1. The Iron Condor would be about half the risk (2.5:1), but you now have 2 maximum loss points instead of just one.
     
    #12     Jan 11, 2014