Archive for the ‘Butterfly Spread’ Category

20 Minute Credit Spread Profit

If you’re new to our site, make sure to watch our FREE TRADING VIDEO. Thanks for visiting! When the market tanked on Thurs – May 6, 2010 – the VIX spiked over 40 and the vols soared. Then the market bounced back up pretty quickly, and around 20 minutes before the close, talk started coming [...]

20 Million Dollar Day (according to TOS anyway)

Today when the market went nuts (dow dropping 1000 points) our TOS platform started acting haywire. Risk graphs were creating crazy formations for awhile there, then our net liquidating value suddenly said we had over 20 million dollars available. Tried as I might, I was never able to  liquidate any of that before it corrected [...]

Option Spread Strategies

There are numerous option spread strategies non directional option traders can use to profit from the market without having to ‘know’ or be necessarily ‘correct’ about market and/or stock direction. These include the iron condor, the butterfly spread, the diagonal and the double diagonal, the calendar spread – the double calendar spread – and, the [...]

Bull Call Spread

When discussing option spread strategies, the opposite of the option credit spread is the option debit spread. While credit spread option techniques bring premiums in the form of credits INTO a traders account, debit spreads do just the opposite as the title of this method suggests – it pulls a debit out of the account. [...]

Bull Put Spread

The bull put spread is one of the option spread strategies that option traders utilize either as a stand alone method to capture profits from a bullish stock, index, or ETF – or – it is a ‘component’ of one to several other option spread strategies – for instance the iron condor option, the butterfly [...]

Put Spread

The put spread is one of the option spread strategies that can serve several different purposes. First however, let’s take a quick look at just what a put spread is. Here is an illustration – Sell 7 DIA Strike 100 Puts Options Buy 7 DIA Strike 99 Puts Options This option spread will bring a [...]

Spread Option

There are a number of option spread strategies non directional trading investors can use to generate consistent income from the markets. These include: option credit spread, iron condor spread, butterfly option, diagonal spread, calendar spread, etc. One of the more simple – or easier to understand spread option strategies is the credit spread – or [...]

Option Spread

Perhaps my favorite option spread strategy is the credit spread – or sometimes also referred to as the vertical spreads. The option credit spread is a basic building block option position for other option strategies, such the iron condor spread and the butterfly spread. This position is made up of a sale of one option [...]