For various reasons I won't get into here, I don't do butterflies very often. This is a variation on a butterfly, however -- a "broken wing" butterfly.
In this case, the play is made up of a 2-wide long call vert (the 11.5 plus one of the 13.5's) and a 1-wide short call vert (one the 13.5's plus the 14.5). It's considered "broken" because flies are ordinarily symmetrical setups; here, one spread is wider than the other, so it's "broken."
In this particular case, I'm looking for volatility to increase going into FOMC/rate hikes, and I figure with a break even of 12.40 and about three weeks to go until expiry, I have a pretty good chance of making some money on the setup.
Metrics:
Probability of Profit: 42% Max Profit: $110 Max Loss: $90 Break Even: 12.40
Комментарий
Getting a fill for this setup may be one of those "easier said than done" type of things, however. The bid/ask on the entire setup is somewhat wide ... .
Комментарий
Ugh. The market would have none of the "giving me a fill" business. May tweak and have another go at it, particularly since vol has crushed down here even further.
Все виды контента, которые вы можете увидеть на TradingView, не являются финансовыми, инвестиционными, торговыми или любыми другими рекомендациями. Мы не предоставляем советы по покупке и продаже активов. Подробнее — в Условиях использования TradingView.