Skip to main content

Iron Butterfly

An option transaction that employs four separate contracts as part of a plan to profit from movements in the price of stocks or futures that are contained within a predetermined range. In addition, the trade is set up to gain from a drop in implied volatility. Predicting the moment when option prices are anticipated to fall in value generally is the key to using this trade as part of a successful trading plan. This typically happens when there is a slight upward trend or sideways movement.

real time unusual options activity, options order flow, darkoption flow

Popular posts from this blog

Domino’s Misses on Profit But Serves Up Strong Sales and Market Share Gains

Baidu Earnings Show Advertising Slump, AI Cloud Offers Bright Spot

Palantir Faces Harsh Valuation Reality as AI Hype Meets Market Rotation