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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (9438)	2/5/2006 8:37:40 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 12411

Thanks for the reference... the one I would use is probably not in the book, but it is a hybrid of two known strategies, i.e., the Iron Butterfly (not to be confused with the standard Butterfly), and the Condor strategy... the difference between the two of these is that the Condor uses four different strike prices (two out of the money Calls and two out of the money Puts) and the Iron Butterfly uses only three and sells the Put as well as the Call of the middle strike price, which is at the money... the Condor uses all out of the money strike prices, and you can vary the distances between them depending on how much you want to risk... of course, neither of these above mentioned strategies can lock in a profit since neither of these include a position in an underlying stock or futures contract, therefore with these two above mentioned strategies if prices move far afield then there's a risk... since I'm also short two contracts, I can vary the strategy and come up with the hybrid that will work for me, and actually lock in a profit no matter what the market does, wild price swings or not... GZ