Tuesday, December 29, 2009

Re: [TheOptionClub.com] SanJose Options

 

George ... I have posted a file containing a couple of risk graphs .... titled 'Butterfly to BWB' .... to illustrate the example below ..... hope this helps .... James

--- In OptionClub@yahoogroups.com, David Steele <dsteele_24@...> wrote:
>
> James can you show some risk graphs illustrating what you're talking about.
>
> --- On Sun, 12/27/09, JP <jp@...> wrote:
>
>
> From: JP <jp@...>
> Subject: Re: [TheOptionClub.com] SanJose Options
> To: OptionClub@yahoogroups.com
> Date: Sunday, December 27, 2009, 5:51 AM
>
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> 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@yahoogro ups.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:
> >
> > From: StevesSngL43@ ... <StevesSngL43@ ...>
> > Subject: [TheOptionClub. com] SanJose Options
> > To: OptionClub@yahoogro ups.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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