Long Iron Butterfly, Long Iron Condor, Wrangles and their Synthetics: Risk, Reward, G

Discussion in 'Options' started by CPTrader, May 24, 2004.

  1. do you know what a stupid is????

    it is not an et member...
     
    #21     May 24, 2004
  2. gnome

    gnome

    Let me guess... "Stupid is as stupid does?"
     
    #22     May 24, 2004
  3. nope!!!!

    it is an actual option combination
     
    #23     May 24, 2004
  4. Any number of positions I've traded would qualify.
     
    #24     May 24, 2004
  5. answer tommorrow!!!

    thanks for playing...
     
    #25     May 24, 2004
  6. damir00

    damir00 Guest

    there isn't even consistency internal to individuals! according to the LIFFE strategy pages a call spread is "long" if you're short the higher strike - unless it's a ratio spread, in which case it's "long" if you're short the lower strike.

    oy.
     
    #26     May 24, 2004
  7. Hwo would you calcuate the maximum risk on the condor/buttefly posiit\\tions.

    I assume the maximum profit is the credit you receive?

    Finally just for clarification - when I say short iron condor - I mean short strangle and long outer strangle. Conversely a long iron condor - is a long strangle and a short outer strangle. I say this because have see various versions of long and short condors.. .. this way we are consistent for purposes of this thread.
     
    #27     May 24, 2004
  8. No, that's your max profit. Max risk is the difference between the strikes times the number of spreads less the credit. Or, more simply, the margin you're required to put up (assuming your broker doesn't require margin on both sides of the spread).
     
    #28     May 24, 2004
  9. Thanks a lot!
     
    #29     May 24, 2004
  10. Hello_Dollars is just more humble and relaxed in his ET image than other options "gurus" are at times... but obviously close in stature... sycophantically speaking of course!

    I have read his posts for a while and always got a lot out of them.

    IcE
    :cool:


    ((p.s. HD... K, did I say it right... ?! You gonna paypal me the $$ now!?)) :p :p :D
     
    #30     May 24, 2004