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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?


To: NateC who wrote (630)2/22/1999 11:27:00 AM
From: KFE  Respond to of 2317
 
Nate,

>>> Butterfly... only risk is if it closes outside range of either long position<<<

If a butterfly is put on with no debit then there is no risk (except early exercise and commissions)no matter where the equity/index goes. The two longs will cover point for point any move in the two shorts.

Ken