is a 1x2 with the 2 spread out... buy 94...sell 92 and 90.....its got less gamma than a 1x2 and can easily be converted into a condor if vol. blows up
Iron Butterfly +10*45p / -10*50p / -10*50c / +10*55c Gut Iron Butterfly +10*45c / -10*50c / -10*50p / +10*55p Pregnant Butterfly Two-strike pregnant butterfly is equal to 1 then 2 then 1 consecutive butterflies Albatross Equal to 3 consecutive butterflies Christmas Tree +70c / -75c / -80c (long call) SemiStock Long underlying / -70 / +75 (Bear spread) (both c or both p) (Source : Coulda Woulda Shoulda, Charles M. Cottle) * * * * * * * * * * * * A shy trader who barely speaks, Decided to study the Greeks, He put on a spread, While still lying in bed, And then proceeded to fondle his cheeks.
dont forget the pterodactyl batman spread and one that I liked called the "shark fin" spread because the curvature looks like the fin of a shark
Bet you guys have never heard of the Tarzan loves Jane spread! It's taught only at the Optionetics Advance Seminar. Anyone, anyone??? (a guy on optionetic claims he's making around 200% or so with this spread) So that you know, I have no idea what it is either! I also like to ask if anyone of you have had much success with those previous posted spreads? I don't want to be opinionated or anything, but most of those strategies suck! Especially, those WHATEVER THING butterfly spread. That's a lot of commission! And hefty hefty loss from each strike (the bid/ask spread those ripoff marketmakers are making)
I don't think it's the MMs' fault. The blame is to be placed upon the creatures that prevent me (an "off-floor" trader) from making a market.
I actually heard that being discussed on one of the BBs. I cannot remember exactly how it was so probably it was not worth remembering!!!!!!!!
Even more interesting than the names assigned to these positions, probably predicated exclusively on the curvature, the fact that there were market makers way back when who "layered" spreads so thick and across so many strikes is really interesting...Imagine the first market markers or group of market makers to start trading into these various spreads...What incredible creativity...