Butterfly Option Strategy

Minimize risk and maximize your return with option spreads. Option spread trading is by far the most varied and versatile strategy for income generation, hedging, and speculation. To achieve longevity in the trading arena, you must understand how these spreads work and the ways to leverage them for a consistent flow of positive returns. The Trader’s Guide to Equity Spread provides the essential info you need to set up and manage option spreads. Trading expert Randy Frederick examines each spread strategy in detail. He provides real-world examples that can be applied to all option markets–equity, futures, stock index, and interest rate–to demonstrate effective ways to control risk and increase your profits. Frederick begins by explaining how the price of an option is calculated and how it relates to the underlying stock, exchange-traded fund, or index. He then introduces you to the spreads–from Vertical and Horizontal to Butterfly, Box, and Gut spreads–and helps you (more…)