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Thanks for correction, it is an ATM butterfly of course. My follow up question to Engine99: what is the mechanism by which upcoming dividends can hurt a holder of a short option? And if there is such a mechanism, shouldn't it benefit holders of long options?

Here's the setup: The underlying XYZ is trading @50.00 There're options available at strikes 49, 50 and 51. You can sell 50-49 put spread for 0.55 and 50-51 call spread for 0.50 By doing this you've just harvested 1.05 premium on 1.00 margin. My question to all the option experts out...

How much crime do you (and any so-called law abiding citizens) need to convict you that "banning" anything (murder, weapons, alcohol, narcotics, off-the books accounts, bribery etc.) never solves the intended problem. Think about it. The problem is not individuals carrying guns. The problem is...

Does anybody know/have experience with about software titles built to automate the process of keeping one's "trade journal"?