IF THEY ASK FOR THIS IM GONNA BE SO HAPPY LOL
what the sam heck is this?
I barely figured out the spread eagle strategy
From CFAi book , in a foot note
_ A short butterfly spread is sometimes called a sandwich spread. _
(Institute 392)
Institute, CFA. Level III 2013 Volume 5 Alternative Investments, Risk Management, and the Application of Derivatives. John Wiley & Sons P&T, 6/18/2012. .
so just the short side of of a Butterfly?
yip
dont forget calmar and sterling ratio
and strip and stack
can you tell me what or those 2? calmar and sertling? thanks
A short butterfly spread is essentially just a more complicated way to construct a straddle, right?
short butterfly your max gain is premium earned. Graph looks like a sandwhich.
Straddle also profits from higher vol but your profit max much higher (unlimited on upside)
i think…
well that would make sense, as a butterfly is usually a bet on low volatility. The short side would be a bet on long volatility.
Caveat, the payoff is different between the two.
Hope they don’t ask this right before lunch!
spread eagle is basically a reverse tight box spread
Dijon?
Another one - CIRCUS Swap.