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Try this option strategy for a slow market!
June 29, 2017

The Butterfly Option –
A Non-Directional, Volatility Based
Option Trading Strategy

A butterfly option, otherwise known as a butterfly spread, is an option trading strategy. This strategy has limited risk, but also limited potential gain, and is based on a comparison between the expected future volatility, and the implied volatility of the underlying asset on which the options are based.

A butterfly spread combines a bull and bear spread and uses three strike prices. The lower two strike prices are used in the bull spread, and the higher strike price in the bear spread. Both puts and calls can be used......

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Best of Trading,
Ian Harvey
Director of Stock Options Made Easy

Stock Market Experiencing a Period of Consolidation

Following on from our article last Thursday, “Stock Market Pauses before Continuing Rally”, a state of flux seems to be continuing.

There has been plenty of action during the past week with incredibly pronounced sectors and remarkably vicious rotations into and out of them, but as stated in the article mentioned, there is not a lot of information or events likely to move stocks right now; but be prepared to follow-through if and when this occurs.

Overall, U.S. stocks closed with little change for the week, with the Dow and S&P posting small gains in the period......

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Best of Trading,
Ian Harvey
Director of Stock Options Made Easy



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