Category: Iron Fly
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What is a Butterfly Option Trading Strategy
A long Butterfly Option Trading Strategy is a limited risk, non-directional options strategy that is designed to earn big (but limited) profits but with a low probability. The long Butterfly spread also wins when the future volatility of the underlying is expected to be lower from the current implied volatility. Just as there are several…
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How to Play Gold, Market Crash
Since I last shared BYDDF, the stock is up +40%. After a sharp run in a very short span, it is now overbought and may take a breather around $7.5-$7.7 level ($6.3 if the pause is a bit more stretched) before a new surge begins. What if there is a market crash? as we are…
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GOOG Iron Fly : Paper Trade/29% Profit
Profit from Google options expiration due to pinning, with reference to my earlier post here : As this was my first time to test this, I did a paper trade. I played GOOG via an Iron Fly: sold Jan 07 490call, bot 500 call, sold 490 put, bot 480 put. Overall credit $3.30 at the…