--- In OptionClub@yahoogroups.com, David Steele <dsteele_24@...> wrote:
> Has anybody read Tony Saliba's book on directionless markets. can you show me some risk graphs of what turbo, tennessee, and pterodactyls butterflies are.
Yeah, I've got that book.
Saliba uses the term "condor" only when the short strikes are adjacent, as in a +520/-530/-540/+550 condor. If the short strikes are farther apart, say, +520/-530/-610/+620, he calls it a "pterodactyl".
Most people I know would still call that a condor, maybe adding some sort of adjective to show that it's wider; eg., a "high-probability condor" or "big-mouth condor".
As for the rest, they're from an interview at the end, where he says, "Elongated butterflies, ratioed butterflies, turbo butterflies, Tennessee butterflies, all were creations that I labeled so that I could communicate with my traders and programmers." He doesn't define them, or discuss them any further than that.
My suggestion: Don't get hung up on the names. Some people think that it's great fun to make up fancy names for trades (especially if they involve flying things), and who am I to spoil their fun? But names are helpful only when they allow you to communicate better with others, as for Saliba and his team. Get too carried away, and they only obscure your meaning.
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