strategies with same risk profiles what is the difference?

B

badlucktrades

I havent been able to find any information on whether different strategies with the same risk profiles i.e same PnL graphs differ in success rate.

When would you use one over the other? Example,

Why would you opt for a bull call debit spread over a bull put spread if they have the same reward/loss?
 
Short put butterfly.... Shorting a fly would be buying the middle strikes... Long call or long put butterfly is short a straddle long a strangle in other words... A better example of this is a iron butterfly... Sometimes guys put on the structure such that the most strikes are otm on expiration.. Because otm are usually more liquid
 
badlucktrades said:
No it is covered.

But I think i picked a bad example.

The difference between a short butterfly, shortput butterfly, reverse iron butterfly, etc.
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You should price all of them. A lot of times factors like ITM vs. OTM will impact slippage and you can save a few pennies with one vs. the other. Theoretically they all have the same payout (like your put credit vs. call debit spread above)
 
Dolemite said:
You should price all of them. A lot of times factors like ITM vs. OTM will impact slippage and you can save a few pennies with one vs. the other. Theoretically they all have the same payout (like your put credit vs. call debit spread above)
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Other than slippage, are there any other reasons? I guess IV /IV rank would effect whether you do a credit/debit spread with the same pay out, but are there differences between two debit spreads with the same payout/ risk i.e anything butterfly.
 
The curve is different between the put and call side as well. If I want to close out some ITM calls at 80% of their eventual value at expiry 5 points at a time, it's easier to do that with calls than puts.
 
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