Directional butterfly spreads are a great way to gain cheap exposure to a stock.
Directional butterfly spreads are a great way to gain cheap exposure to a stock.
In this example, we were bullish on CRM in early May when it was trading at $121 and placed a 3-month butterfly centered at $130. The trade cost $49 with a max profit of $450 per spread. By June 5th, the trade was +$46 or 93%.
Video Length: 00:05:19
The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
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