Options Playbook Radio 164: GOOGL Skip-Strike Butterfly
Today Brian covers a skip-strike butterfly, which you can find on page 109 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- What are the right circumstances for trading a skip-strike butterfly?
- A bad news event in GOOGL creates an interesting situation for options traders
- Where is GOOGL right now?
- What exactly is a skip-strike butterfly?
- What's our forecast?
- Where is the at-the-money straddle?
- Setting up the trade
- Picking strikes
- Picking expiration
- What's the maximum risk?
- What will this cost?
- Butterfly considerations
- What do we want to happen?
Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.