What's Your Favorite Underlying Stocks To Trade Options On?
- Thread starter birdman
- Start date
sp futures.
DIA .more strikes and it moves good.
How come the DIA over the DJX? Just wondering.
depends what you want to do?
i trade the short side (short spreads) on stocks like GE, ED, IBM, UPS, and MRK. they are fairly stable from month to month when looking to sell away from the market so one can pick up 4% - 7% per month on initial margin if done right.
Pete
i trade the short side (short spreads) on stocks like GE, ED, IBM, UPS, and MRK. they are fairly stable from month to month when looking to sell away from the market so one can pick up 4% - 7% per month on initial margin if done right.
Pete
Iron butterfly:
An option strategy with limited risk and limited profit potential that involves both a long (or short) straddle, and a short (or long) combination. An iron butterfly contains four options as is an equivalent strategy to a regular butterfly spread which contains only three options. For example, a short iron butterfly might be: buying 1 XYZ May 60 call and 1 May 60 put, and writing 1 XYZ May 65 call and writing 1 XYZ May 55 put.
An option strategy with limited risk and limited profit potential that involves both a long (or short) straddle, and a short (or long) combination. An iron butterfly contains four options as is an equivalent strategy to a regular butterfly spread which contains only three options. For example, a short iron butterfly might be: buying 1 XYZ May 60 call and 1 May 60 put, and writing 1 XYZ May 65 call and writing 1 XYZ May 55 put.