Recent content by Dustin Parker

Sure, in a real life example Ticker: BIIB - $265.8 price @ time of trade Strategy: Long iron butterfly SHORT $252.5 PUT LONG $265 PUT LONG $265 CALL SHORT $277.5 CALL ------------------------- Price was net debit of 10.3, anticipating a move of at least 12.5. In actuality, this was...

Well, the reason why I worry about it is because it can turn into an unprofitable trade. I believe that's good cause. You could have have a spread to that has max profit of 10%, and a very small difference can turn the trade unprofitable. The question: Does anybody have any actual...

Question/thoughts for long spread/iron butterfly traders. My problem is trying to accurately calculate the potential gain in my strategies, factoring in implied volatility. The problem: Every website on earth tells you the maximum profit from a debit spread is the difference in strikes minus...