Hey everyone – Scott Bauer from Prosper Trading Academy here. In exploring advanced options strategies, it’s crucial to understand how variations can be applied to tailor risk and reward. Today, I’m ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much. The profit ...

Stocks can be very exciting when they trigger breakouts and breakdowns, forming strong price trends. However, the reality is that stocks usually tend to be rangebound in a consolidation. Whether it's ...

A long call butterfly is entered when a trader thinks a stock will not rise or fall by much between trade initiation and expiration. When using calls, the trade is constructed by buying an ...

Trading options can be a complicated process, as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options ...

An inverted yield curve with a negative butterfly spread of -21 basis points offers an opportunity to bet on a reversion to mean (64 bps). Increasing probability of a recession implied by the yield ...

All week, we've been unpacking options strategies with cool names. Next up, the iron butterfly is a flexible options strategy that can be placed using call or put options, but each trade's risk and ...

Trading options can be a complicated process, as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options ...