Bull put spread

This intermediate option trading strategy aims to profit from a neutral to slightly bullish price action in the underlying stock. A bull put spread consists of one short put at a higher strike price and one long put at a lower strike price. Both puts have the same underlying stock and the same expiration date. A bull put spread is established for a net credit (or net amount received) and profits...

Short Iron Butterfly spread

The Short Iron Butterfly spread is a way to profit from neutral stock price action near the strike price of the short options (center strike) with limited risk. It is is a four-part strategy consisting of a bull put spread, and a bear call spread in which the short put and short call have the same strike price. All options have the same expiration date, and the three strike prices are...

Skip Strike Butterfly with Puts

In the above example: Buy 1 Put strike 95 Sell 2 Puts strike 105 Buy 1 Put strike 110 The position may be established for a net debit or a net credit, depending on the bid-ask quotations, and both the potential profit and maximum risk are limited. Strike prices are equidistant, and all options have the same expiration month. Risk is limited to the net debit paid: after the trade is...

Skip Strike Butterfly With Calls

In the above example: Buy 1 Call strike 95 Sell 2 Calls strike 100 Buy 1 Call strike 110 The position may be established for a net debit or a net credit, and both the potential profit and maximum risk are limited. Strike prices are equidistant, and all options have the same expiration month. Risk is limited to the net debit paid: after the trade is paid for, no additional margin is...

Christmas Tree Butterfly with Calls

In the above example: Buy 1 Call strike 95 Sell 3 Calls strike 105 Buy 2 Calls strike 110 The position is established for a net debit, and both the potential profit and maximum risk are limited. Strike prices are equidistant, and all options have the same expiration month. Risk is limited to the net debit paid: after the trade is paid for, no additional margin is required. Bullish...

Christmas Tree Butterfly with Puts

In the example above, Buy 1 Put strike 110 Sell 3 Puts strike 100 Buy 2 Puts strike 95 All puts have the same expiration date, and the four strike prices are equidistant. The position is established for a net debit, and both the potential profit and maximum risk are limited. Strike prices are equidistant, and all options have the same expiration month. Risk is limited to the net debit paid:...