butterfly

[met1989]

hey
im looking in buying a butterfly spread for one day and seeing if there is a price depreciation in one day what stuff should i be looking at in order to value what options would be the best to buy ?

 

[Mnewton]

try selling an iron butterfly spread

 

[met1989]

try selling an iron butterfly spread

What do I gain from regular butterfly?

 

[Mnewton]

A credit

 

[Option_Attack]

Decent info in this thread, but on the credit side: https://www.elitetrader.com/et/threads/delta-hedged-put-butterfly-the-road-to-50-apy.330348/

 

[TheBigShort]

A credit

I hope your not being serious.

 

[Mnewton]

So what do you think is the difference between a regular butterfly and a credit iron butterfly

 

[TheBigShort]

You stated selling an iron butterfly is better than buying a butterfly because you receive a credit.

 

[destriero]

So what do you think is the difference between a regular butterfly and a credit iron butterfly

Nothing?

 

[Mnewton]

A call butterfly is a debit.
A sell iron butterfly is a credit in my books.
Or perhaps I miss understood the question