Posted by R. MAK. on August 30, 2009 ·
A concern is associated with the butterfly and that is the commissions. Probably the ‘butterfly spread’ is the most expensive of all option strategies. By stockbrokers this strategy is often touted due to the reason that…
Posted by R. MAK. on August 9, 2009 ·
In finance, If there is an involvement of a purchase of one option and a sale of another option in the same class and expiration but different strike prices then it is referred to as a credit spread, or net credit spread. For entering the position investors receive a net credit, and they want the spreads to narrow or expire for profit. On the contrary, to enter a debit spread an investor would…
