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Anyone here put their money in a "Butterfly?" A friend e mailed me this morning to tell me that today was the day for employing the Butterfly. I had never heard of it and I am almost to RMD time. Have I missed something?
Butterfly spreads are options trades when you think the uderlying stock or ETF will stay within a given range. Some options trades do have weird/funky names to them.
Say ABC is at 32.51 ... you can set up a butterfly spread with the max profit reachedat either 30 or 35 if you think it will move into that range.
Comments
Options trading term:
https://www.investopedia.com/terms/b/butterflyspread.asp
Butterfly spreads are options trades when you think the uderlying stock or ETF will stay within a given range. Some options trades do have weird/funky names to them.
Say ABC is at 32.51 ... you can set up a butterfly spread with the max profit reachedat either 30 or 35 if you think it will move into that range.
Regards,
Ted