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Strategies & Market Trends : Option Spreads, Credit my Debit
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To: KFE who wrote (536)2/14/1999 8:52:00 PM
From: jjs_ynot  Read Replies (1) of 2317
 
In the spread that you describe; it seems that the amount of the increment away from the strike price (between the long and short positions) also has an effect on the possible net credit.

I assume that all of the options are calls from your example; although they need not be. It also seem like your best chance for a debit-free butterfly is for the two short options to be at the strike equal to the price of the underlying (at the money).

Were you able to get a debit-free butterfly on equity and index options?
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