Tham khảo tài liệu 'option strategies profit making techniques for stock index and commodity options 2nd edition_11', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 218 OPTION STRATEGIES TABLE Long Butterfly Results and Short Call Results Price Long butterfly Short call 515 -1 4 71 2 520 -1 4 71 2 525 43 4 71 2 530 -1 4 21 2 535 -1 4 -21 2 540 -1 4 -71 2 spread is that you are also giving up the miniscule risk of the long butterfly if the market continues higher. Converting the position to either a short call or a long put is the most bearish alternative. This entails liquidating three of the four options in the butterfly. Continuing with the example in Table Table shows the results of keeping the original butterfly spread versus moving to the short 525 call at 71 2. This shows that shorting the call at the middle strike can be an attractive alternative if you have turned bearish. Note however that the short call has greater risk if the market rallies significantly. The alternative to a short call is to hold a long put if you have initiated a butterfly using puts. This will have greater profit potential than the short call but also more risk. One main problem with converting to the put is that the break-even point is lower than with the short call. Another disadvantage is that you are selling time premium rather than buying time premium. Rolling down entails liquidating the current butterfly and initiating a new position with lower strike prices. You might be taking a loss on the initial position looking to increase your profit potential if prices stay at their current position. Table shows an example of rolling down so that the middle strike is at-the-money. In this case you are rolling down to the 515 520 and 525 strikes with prices of 111 4 97 8 and 71 2 respectively. A more bearish tactic would be to lower the strike prices even further. TABLE Long Butterfly Results and Roll Down Results Price Original butterfly New butterfly 515 -1 4 1 520 -1 4 6 525 43 4 1 530 -1 4 1 Butterfly Spreads 219 If the Price of the Underling Instrument Rises Bullish Strategies If the UI price rises and you are bullish .
