Reverse Butterfly Spread
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<< Butterfly Spread Example Butterfly Spread With Puts >>A Reverse Butterfly Spread is a butterfly trade that can actually stop time in it’s tracks - then turn it on it’s heels and push it back - causing not only the stock market - but the entire world - to actually start ticking backwards.
This can be useful in a number of different ways. Say there was a sudden big move in the market forcing you to make an adjustment on a trade - only to have the market just as suddenly turn back around and take off in the opposite direction.
Well, playing the reverse butterfly spread - you could simply ride it back in time to when you made that unnecessary adjustment - and just not make it.
Pretty impressive right? Hey, I know. You don’t have to tell me - you’re preaching to the choir. For several years now I’ve been shouting from the roof tops how amazing and versatile these butterfly spread trades are…
Oh, all right.
I’ll get into what a Reverse Butterfly Spread Trade ‘really’ is next time.
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