The Traderszone Network

Published in Options · TZ Featured Lists 11 January, 2012 by The TZ Featured Staff

Options Trading: A Brief Discussion of Butterfly Spreads

“I only ask to be free. The butterflies are free.” — Charles Dickens My last few postings have served to introduce certain families of option trades. I find it helpful to embrace the concept of various families sharing certain and specific characteristics. In doing so it serves to help avoid the chaos of considering whether each possible option trades as its own unique individual with its own unique set of defining characteristics. Grouping these trades into families reduces the number of specific variances the trader must consider in each particular case.

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