{"product_id":"v216exyoopby","title":"V. 21:4 (66-67): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eBUTTERFLY SPREADS\u003cbr\u003e\u003cbr\u003eWould you be so kind to explain what\nexactly a butterfly spread is? Thanks \nSimon\u003cbr\u003e\u003cbr\u003eA butterfly spread is a sideways market\nstrategy using all calls or puts, and\nis designed to profit from a stock trading\nin a specific range. They are often\ncheap to place, offer high rewards, and\ncan be profitable within a few days to a\nfew weeks; so they are ideal for shorterterm\nswing traders. The construction of\nthe spread generally involves selling\n(shorting) two contracts in the middle\nof a stock range (the body) and buying\ntwo contracts (the wings) on either side\nof the short position, one with a higher\nstrike than the short contracts and one\nwith a lower strike. (See Figure 1 for a\nrisk curve.) Your maximum profit on\nthe trade is the difference between the\nshort and long strikes, minus the net\ndebit. Your maximum risk is the total\ndebit minus the credit received for the\nshorts.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134168527217,"sku":"\\V21\\C04\\082OPT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7c04fd58-2cc6-4434-b6bb-e08135068ea7.jpg?v=1739669890","url":"https:\/\/shop.traders.com\/products\/v216exyoopby","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}