Double Butterfly spread

[cdcaveman]

Just a question... the spread is +1/-3/+3/-1 what exactly does this isolate..

 

[FCXoptions]

Just curious, what product is this on?

 

[minmike]

It is long a fly, short a fly. I guess it could be seen as representing the derivative of the cube.

+1 +1
-2 -1 -3
+1 +2 +3
-1 -1

 

[cdcaveman]

It's. On crude oil

 

[wwatson1]

My god

 

[cdcaveman]

It's actually a bull spread with three bear spreads inside it..... +1/_/_/-1, -3/+3... Your trying to isolate a dislocation... In this example its june

 

[cdcaveman]

My god

why do you say my god?

 

[cdcaveman]

It is long a fly, short a fly. I guess it could be seen as representing the derivative of the cube.

+1 +1
-2 -1 -3
+1 +2 +3
-1 -1

1/-2/1 and -1/+2/-1

aligned like this
+1/-2 /+1/ 0
0 /-1/+2/-1

 

[cdcaveman]

This structure should be much more stable then a regular butterfly

 

[Guile]

Interesting spread cdcaveman. What about commissions? How much profit is eaten up by retail commissions? Is the range wide enough to overcome retail commissions?