The Butterfly’s just a fancy name for a type of spread because it looks like a butterfly. You can trade a butterfly to the upside you can’t really tell downside or you can trade it to collect option premium butterfly’s a very effective strategy because it uses a lot less margin and which means a lot less risk to be able to trade those larger dollar value stocks.
First I want to share with you exactly what the butterfly is and what it looks like on a regular diagram and then I want to show you in the trading program and how to set up the butterfly.
#optiontrading #optionstrategy #butterflyspread #tradingstrategy #tradingstocks
Posted at: https://tradersfly.com/blog/setup-a-butterfly-spread/
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