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