What is the name of this spread? Any expert?

Discussion in 'Options' started by benysl, Jul 17, 2011.

  1. benysl



    I would like to know anyone know the name of this spread and anybody traded this way. Call and put will be the same I would just illustrate on the put side.

    SPY at 131.69

    A typical butterfly buy 1 128 put/ sell 2 127 put/ buy 1 126 put. This is a typical butterfly done with a small debit

    A broken wing butterfly buy 1 128 put/ sell 2 127 put/ buy 1 124 put. This is a broken wing butterfly with the tail must further so it is done with a credit.

    This is the one I am interested in. Buy 1 128 put/ sell 2 126 put/ buy 1 125 put. This is not a typical butterfly. I wonder what is the name of it and does any book show this kind of position?
  2. It's still a broken fly, as far as I am concerned. What do you need a book for?
  3. benysl


    thank you, just thought I have some reading up to do. So far I think random walk has a book on it but it is the other way round but still a broken wing fly.

    cheers have a nice weekend