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Options Playbook Radio 178: Looking into AAPL Butterflies

Options Playbook Radio 178: Looking into AAPL Butterflies

Options Playbook Radio · The Options Insider Radio Network

October 5, 201716m 0s

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Show Notes

We are continuing the discussion of options pricing. This week we take a deep dive into pricing of a butterfly.

Specifically:

  • Looking at a 10-day butterfly in AAPL
  • Picking a five-point spread
  • What strikes and expirations to choose?
  • What will this cost?
  • What is the maximum risk and reward?
  • What do we want to happen?
  • What impacts the pricing of butterflies?
  • Managing expectations
  • Looking at the same thing for a November 17 expiration
  • What is the ideal scenario?