Butterfly Expectations

The Butterfly Strategy is an effective strategy for high volatility environments. It also offers a unique <a href="https://ontt.tv/X1HiN">risk-return profile</a> is different from our typical <a href="https://ontt.tv/nwCnu">short premium strategies</a>. Still, when selecting your strikes for this strategy, you want to be mindful of the more aggressive management style that we prefer to take. With this in mind as we consider a new position in SHOP today, we show how a wider Butterfly is <a href="https://ontt.tv/Cp9lz">almost always preferred</a> over a more narrow Butterfly.