ratio spreads and butterflies

Discussion in 'Options' started by stevenpaul, Aug 24, 2010.

  1. There are a number of scanning services, such as Optionistics and Avasaram, that offer lists of the current best butterfly opportunities, and various other strategies, but not backspreads and frontspreads (that I've been able to find, at least). I was wondering if the good candidates for long butterflies could be renovated (by eliminating the last leg) into good frontspreads, and good short butterfly candidates could go back into the cocoon and emerge as good backspreads. In other words, are the criteria that constitute good butterfly opportunities the same as the criteria for vertical ratio spreads, thus allowing us to refer to the butterfly list for our ratio spread candidates?

    Thanks folks.