Stocks & Commodities V. 29:10 (72): Explore Your Options by Tom Gentile

Stocks & Commodities V. 29:10 (72): Explore Your Options by Tom Gentile
Item# 172EYOPDF
$2.95
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile

A "BETTER" FLY POSITION

What can be done to make the long butterfly strategy more consistently profitable? The chances of a stock landing at the middle sold strike at expiration is not a high-probability outcome, so what might be considered during the life of the spread?

Great question. Itís important to be working with a range-bound stock or one thatís moving toward the positioned middle strike of the spread. Lower statistical volatility stocks might also provide a more consistent opportunity with the long butterfly.

Lower volatility is a good characteristic because the two embedded verticals making up the butterfly should react more favorably than a high-volatility situation. All else being equal, the in-the-money vertical position expands toward its maximum profit potential and the out-of-money loses its extrinsic value quicker than if volatility is elevated. Once a butterfly position shows some profit, various adjustments can be considered to increase oneís odds of more consistent results.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order