Spreads versus Butterfly

[wxytrader]

So a butterfly offers slightly less risk for slightly more profit, but with a smaller MAX profit window AND a second break even level leading to losses? That's it? So basically a butterfly is used so traders can sound cool saying they "Put on a fly" ? and make everything more complicated than it needs to be?

GME AUG9 21/22/23

 

[Zwaen]

To fly, or not to fly, that’s the question

 

[poopy]

Consider the source, ppl. The dude thinks pc-parity is a debunked theory.

 

[wxytrader]

Consider the source, ppl. The dude thinks pc-parity is a debunked theory.

No...I said probability of profit favours selling a pc spread over buying one.

Anyway, the source is the pnl chart.

 

[poopy]

You're trading price (debit) for (delta) modality.

 

[wxytrader]

You're trading price (debit) for (delta) modality.

View attachment 346029

Yes but the fly is all about @expiry and the spread returns better @expiry.

 

[cesfx]

break a wing, try 20,22,23 and it will look more like your spread

 

[wxytrader]

break a wing, try 20,22,23 and it will look more like your spread

That's better...little more risk but better profit potential.

 

[poopy]

Yes but the fly is all about @expiry and the spread returns better @expiry.

I am done with you. I stated that you're trading price for modality. The fly outperforms from 0-216. The 1x1 outperforms from 216-inf.

 

[wxytrader]

I am done with you. I stated that you're trading price for modality. The fly outperforms from 0-216. The 1x1 outperforms from 216-inf.

yes @ expiry so trading price for delta yields no benefit.