Sunday, December 27, 2009

Re: [TheOptionClub.com] SanJose Options

 

George ... although there are many variations ... in its simplest form it can be seen as either ... a butterfly + vertical spread .... or a ratio + otm option for protection .... for example; a +1 90c / -2 100c / +1 120c BWB can be dissected as either;

[+1 90c / -2 100c / +1 110c Bfly] and [-1c 110 / +1 120c vertical] or
[+1 90c / -2 100c ratio] and [+1 120c]

The so-called attraction of being able to execute the BWB for a credit is somewhat mitigated by the inherent risk of the embedded vertical spread or ratio.

Cheers
James

--- In OptionClub@yahoogroups.com, george barson <georgebarson@...> wrote:
>
> I don't understand what is special about a broken wing butterfly could you enlighten me?
>
> George
>
> --- On Thu, 12/24/09, StevesSngL43@... <StevesSngL43@...> wrote:
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> From: StevesSngL43@... <StevesSngL43@...>
> Subject: [TheOptionClub.com] SanJose Options
> To: OptionClub@yahoogroups.com
> Date: Thursday, December 24, 2009, 3:43 PM
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> Hey Guys im just curious since you have all been talking about the sanjose
> options course if any of you have joined or were thinking about joining ? I have
> been a member since April. I would like to find a couple of other students from
> the course to work with on this new trade Morris has us working on. I love the
> fact that its such a low risk trade with the potential of really high
> reward. I have never seen anyone else anywhere do this stategy.  Steve
> Gutshall
>

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