butterfly with tilting wings

Discussion in 'Options' started by hedgex, Aug 25, 2009.

  1. hedgex


    Hey gurus out there,
    What is the name of the option strategy that on a P&L diagram looks like a W, or a butterfly with wings tilting up? You get that by buying more OTM options than in a butterfly.
  2. How about an "Inverted Seagull"
    Sounds cool enough. Or call it what you want.
  3. spindr0


    I think it's called the WUBBLE-U :)

    You can also achieve it with ratioed calendar straddles, double diagonals, etc. Generally, it involves any inverted V position involving at least 3 strikes and more long legs than short.
  4. MTE


    I believe it's called a Wrangle.
  5. hedgex


    some literature discusses it with the butterfly as they have similar features.
    Thanks MTE.
  6. Call it whatever you like ? You need some kinds of ratio to achieve that effect.