"condor" and "Butterly" eurodollar trades

Discussion in 'Financial Futures' started by increasenow, May 22, 2007.

  1. Hello!
    Can you explain a eurodollar "butterfly" spread trade and a "condor" butterfly spread trade...thanks!!!!!!!!!

  2. A butefly spread is a extension of calendar spread. Where calendar spread have been defined as the difference between two delivery months is the same futures contract, buterflies are the difference between two sequential spread in thh same future contract ie:

    (p1-p2)-(p2-p3) or p1+p3 -(2*p2)

    For example m6u6z6

    And condor is the sum of two butteflies.

    Buterfly trades are good for trading samll distortions on the micro curve and condors are just more volatile.
  3. does it work?...how many days to be profitable?...how many contracts in total to make it worth it?
  4. ??...............Yes, they can.............if you're "short" the middle strike(s), you'll generally have to hold the position close to expiration in order to squeeze out most of the time value......butterflies have 3 strike prices, condors have 4 strike prices...........if you're a retail trader, avoid doing those types of trades because you'll give up too much slippage when getting in and out of the trade.
  5. C99


    not talkin bout options here.
  6. minmike


    definitely profitable with professional pricing.

    To make a half a tick on one fly/condor, you need to trade 8 cars. Do the math with commissions if that would be profitable for you.
  7. I found this on CME's web site, but I couldn't find the link for it, so I'll just post it again here.

    It has a variety of charts showing market moving events (magnitude and speed) for butterflies and a variety of other spreads in Eurodollars.
  8. Buddha_E


    I have been trading the Eurodollar Interest Rate contract for over 10 years. If you long a Butterfly or fly is like this

    Z H M
    +1 -2 +1

    It is a combination of 2 spread like Z/H and H/M spread. The Wing is Z and M Contract while the body is the H contract. To get the value is Z/H - H/M

    A Condor is like this

    Z H M U
    +1 -1 -1 +1
    It is a bigger wing span.

    I hope I explain enough. But as mention before, it is very costly to do such unless you got professioan pricing. Why do you wanna learn this? I would be willing to help you further if you are interested... you can contact me at financial.frontiers@gmail.com