Looks like a 45/50/55 reverse iron butterfly plus a short 45/55 strangle.
Unlimited risk. Needs to be monitored carefully.
Unlimited risk. Needs to be monitored carefully.
From: asdfffg1 <joshuas7@hotmail.
To: OptionClub@yahoogro
Sent: Friday, August 28, 2009 7:53:18 PM
Subject: [TheOptionClub.
If XYZ is at 50, and a call ratio spread and put ratio spread are
created using the same month expiring option contracts, what is this combination called? Is there even a name for it when ratio spreads are combined, or is it simply two basic trades? An example is below. Thanks Guys
XYZ at 50
Trader buys one Dec 2009 ATM 50 call and sells two Dec 2009 55 calls. The trader then buys one Dec 2009 ATM 50 put, and sells two Dec 2009 45 puts.
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