Apr 20, 2017
It's earnings season again. As such, we're looking at a skip-strike butterfly to capture some earnings move. You can find skip-strike butterfiles on page 108 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.
In this episode, Brian covers:
- A review of last week's UAL butterfly
- Lesson to learn: Don't try to hit a home run with a butterfly
- Putting on a skip-strike butterfly with calls
- Picking the expiration
- Looking at the implied volatility
- Picking strikes
- What is the net credit?
- What is the maximum risk?