What is this called?

Discussion in 'Options' started by asdfghj7, May 16, 2009.

  1. Short one 910 call for $16
    Long two 920 calls for $12
    Short two 950 calls for $4

    What would be the name of the trade
    above if we started off with a premise
    having the ES at 900 prior to execution
    Then, same question if ES is at 920
    prior to execution. All in the same
    contract month as well. Thanks
  2. Bear call ratio spread
  3. Coolio


    So this looks to earn a bit of credit if the SPY sails lower, or stays @88 but profits hugely if it goes to 95 at June expiry.

    According to my analyze tab, this looks like a butterfly that still makes money if SPY never goes back to the 95 jackpot.

    Fascinating trade.
  4. It looks like a reverse uneven slingshot position to me.
  5. Stosh


    Double under and over Indian legbreaker??
  6. A "dizzy butterfly". It flies in circles because the wings are unbalanced. :cool:
  7. Lol, that cracked me up...!
  8. 1) Nomenclature does not depend on your premise for opening the trade. Nor does it depend on the stock price.

    2) This position is a combination:

    a) Short one lot of the 910/920/930 butterfly

    b) Long one lot of the 1 x 2 ratio spread: long 1 930
    short 2 950

    In this case,the 930s canceled each other.

  9. ed_berk


    How do you manage risk if the market moves above 950? This position, as far as I can tell, would have unlimited risk.