Iron Butterfly NEUTRAL (OR RANGE-BASED) INCOME STRATEGY An Iron Butterfly is a four-leg options trade where we sell a Credit Call Spread and simultaneously sell a Credit...
Author - The Options AI Team
Market View Last Week – Following a volatile week of large moves in both directions the SPY ended the week down 2.9% following two weekly declines near 5%. The 2.9%...
Video Summary (3 minutes) When a spread is initially bought or sold, it has an initial risk, reward, and probability of profit. As time passes towards expiration, that...
Video Summary (1 and a half minutes) The closing price of the stock on expiry establishes which options finish in the money and subject to exercise or assignment or...
Video Summary (2 minutes) Trade execution in options is just like submitting an order in stock, with a limit price, and a current Bid/Ask. In options spreads, even...
Video Summary (2 minutes) We’ve covered Debit Call Spreads, and used that as an opportunity to discuss the Expected Move. Next, we’ll focus on Debit Put Spreads, and...
Video Summary (3 minutes) By turning an outright option like call or a put into a call or put debit spread, the buyer can lower the cost of their trade and create a...
Video Summary (3 minutes) In the prior video we went over the similarities between an Iron Condor and an Iron butterfly. Both trades combine a credit call spread with a...
Video Summary (2 minutes) We’ve seen how a Credit Call Spread is a trade that sees gains if the stock stays below a certain level. And we’ve seen how a Credit Put Spread...
Video Summary (2 minutes) Many investors use the Credit Put Spread as an income-generating strategy, selling a put spread at a level they believe a stock will remain...
Video Summary (3 minutes) When we sell options and receive a credit it is often referred to as an income-generating trade. The potential income comes from a decline in...
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