hi 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?
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