The reverse iron butterfly spread is a complex, debit spread strategy which benefits from movement in the underlying instrument. It’s similar in concept to a short butterfly spread, except it’s a debit spread. A trader profits from a reverse iron butterfly spread when the underlying stock rallies or sells off. A reverse iron butterfly spread [...]
The short condor spread is a complex credit spread strategy which benefits from movement in the underlying instrument. A trader profits from a short condor spread when the underlying stock rallies or sells off. A short condor spread is made up of four options trades at once. It can be done with either all calls [...]
A Short Straddle is a neutral options strategy which produces a profit when the underlying stock doesn’t move much up or down. It’s essentially the opposite of a Long Straddle which profits when the underlying stock makes a big move up or down. So, if you think your stock is going to move sideways for [...]
A Long Straddle is created by buying both a put and a call with the same terms. In other words, you buy both a put and a call on the same underlying stock, with the same strike price, and the same expiration date. A straddle purchase allows the buyer to make big potential profits if [...]
The iron butterfly spread is a complex, neutral, credit spread strategy, similar to a long butterfly spread. A trader profits from an iron butterfly spread when the underlying stock is stagnant or trades in a tight price range over the life of the spread. An iron butterfly spread is made up of four options trades [...]