Online Courses - Basics of Spreading: Butterflies and Condors

Course Overview:

Fifth in the series, this module presents detailed explanations and examples of Butterfly and Condor spreads.

This module covers the following spreads in detail:

  • Long Call Butterfly
    The long call butterfly spread is made up entirely of call options on the same underlying stock (or index). It’s constructed by purchasing one call with a given strike price, selling (writing) two calls with a higher strike price, and purchasing one call with an even higher strike price.
  • Long Put Butterfly
    The long put butterfly spread is made up entirely of put options on the same underlying stock (or index). It’s constructed by purchasing one put with a given strike price, selling (writing) two puts with a higher strike price, and purchasing one put with an even higher strike price.
  • Iron Butterfly
    A long synthetic, or “iron,” butterfly spread is made up of both call options and put options on the same underlying stock (or index). It’s constructed by purchasing one put with a given strike price, selling one call and one put with a higher strike price, and purchasing one call with an even higher strike price.
  • Long Call Condor
    The long call condor spread is made up entirely of call options on the same underlying stock (or index). It’s constructed by purchasing one call with the lowest strike price, selling (writing) a call with a higher strike price, selling (writing) another call with an even higher strike price, and purchasing a call with the highest strike price.
  • Long Put Condor
    The long put condor spread is made up entirely of put options on the same underlying stock (or index). It’s constructed by purchasing one put with the lowest strike price, selling (writing) a put with a higher strike price, selling (writing) another put with an even higher strike price, and purchasing a put with the highest strike price.
  • Iron Condor
    A long synthetic, or “iron,” condor spread is made up of both call options and put options on the same underlying stock (or index). It’s constructed by purchasing one put with the lowest strike price, selling one put with a higher strike price, selling one call with an even higher strike price, and purchasing one call with the highest strike price.

Each Spread discussion includes an analysis of:

  • General Nature & Characteristics
  • Debit vs. credit
  • Motivation for Spreading
  • Risk vs. Reward
    • Maximum Profit
    • Maximum Loss
    • Break Even Point
    • Partial Profit
  • Profit & Loss Before Expiration
  • Effect of Volatility
  • Effect of Time Decay
  • Assignment Risk

How to Register:


Step 1: Log into your MyCBOE account.



Step 2: Enter Registration Code

Please click here and enter optedu if prompted.

If you are taken directly to your Course Status Page, please scroll to the bottom for your Current Registration code. Please click on Change Registration code if it is NOT optedu


Step 3: Complete a Student Profile

Complete the student profile page and click on the submit button.


Step 4: Select your Courses

You should now be on your personalized Course Status Page which will list all of our available courses. To register, simply select the course name link.

 

Contact Us:

Click here to send us an e-mail.

  VIX Snapshot

*Third Party Advertisement