I was wondering if anyone had any experience with doing put credit spreads and call credit spreads at the same time on the same stock ??? thnx
Are you referring to an iron butterfly? For instance ELX at 19.67, sell the april 20 call for 1.10 and sell the april 20 put for 1.40 credit 2.50. Buy the april 22.50 call for .45 and buy the april 17.50 put for .50 debit .95. 2.50 credit minus .95 debit=1.55 credit. I have found that you still have to trade within this spread. If the stock goes into the 22's I would buy back some of the cheap short 20 puts or stock in the 17's buy back some of the cheap short 20 calls. Need a stock to be somewhat range bound till expiration. Hope this helps answer your question.