TOS Probability Analysis graph & Q's on butterfly

Discussion in 'Options' started by Pauluss, Apr 22, 2009.

  1. Pauluss


    Hi All,

    I enjoy this new thread to thank all the participants, I learned a lot and will continue this way thanks to your explanations.

    I have 2 questions I cannot figure out:

    The first one is related to the probability analysis of the TOS platform (see picture attached)

    What does that mean? How can we use it to put a trade in place?

    Second question is about butterfly.

    What are the strategy to get out if the trade doesn't go the way we want? E.g. is a good idea to STC the positions in order to have a downside bias? Or to BTC for an upside one?

    Thanks for your help, support & inputs