Discussion in 'Options' started by kj5159, Aug 13, 2019.
132 when you have a directional bias (trade puts for bullish & calls for bearish)
121 when you have a neutral bias (price likely to stay in a defined range)
***Not always but most often.
I think there is plenty of post by @destriero about it.
there is also one page where one guy collected all the related threads:
Thanks for posting this.
Upon some more reflection I think that the 132/231 is about skew steepness more than anything else.
yep I think that the 132/231 fly is used instead of the 121 when there is a directional assumption and skew is steep.
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