There has never been any disagreement as to what constitutes buying a debit spread. The problem occurs when two spreads are traded as part of one position - the iron condor. I go back to basics: The condor spread is a debit spread. You buy one call spread (or put) and sell another call spread, with higher strikes and a lower price. Thus, you pay. This position wins when the stock remains between the strikes. The term 'iron' designates an equivalent position. the iron condor behaves exactly like the condor. But the specific options chose are different - but equivalent. this spread also wins when the stock remains between the strikes. Thus, long a condor is the same as long an iron condor. That's my definition. I've said that before and the disagreement was reasonable and logical. I understand why others disagree with my definition. Sadly there is no formal authority to decide this issue. IB and TOS disagree and that's part of the problem for everyone. Mark
A condor is similar to a butterfly, except there are 2 strikes involved instead of one. But the most important concept is you can be LONG or SHORT the condor or butterfly. If you are short, you hope prices remain stationary. If long, you hope they move...in either direction.
I don't know what species of butterfly you are describing. Yes, you can be long or short. In my universe, the LONG buttery (long the wings, short the middle) wins when the underlying ends near the middle strike. For most people, that means the underlying remains relatively stationary. Mark
This will be one of the month that IC trader will not forget for a long long time (together with Sept/Oct 2008). we should send a thank you card to well Fargo for their joint effort to virtually pump the market up.