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xv Contents<br />
Assessing Risk in Ratio Spreads and Back Spreads<br />
Through Ratio Analysis 143<br />
Unbelievable Moves 145<br />
Conclusion 147<br />
CHAPTER 6<br />
Wingspreads 148<br />
Butterfly Structure 148<br />
Iron Wingspreads 153<br />
The Greeks of a Butterfly 154<br />
-Delta 154<br />
-Gamma 156<br />
-Vega 158 156<br />
-Theta 160<br />
Comparing the Pricing of Butterflies 160<br />
Using Butterflies to Speculate Directionally Can be a Challenge 162<br />
Time Out for a Quick Lesson 163<br />
Options Matrix 166<br />
Condors and Stretched out Condors 167<br />
Embedded Butterflies in Wide Butterflies 169<br />
Wingspread Dissection in Practice 170<br />
Skip-Strike-Flies 176-177 175<br />
Ratioed Verticals/Unbalanced Butterflies 178 177<br />
Why Market Makers use Dissection 178<br />
Conclusion 179<br />
CHAPTER 7<br />
Multi Expiration Spreads 180<br />
Jelly Rolls 181<br />
Jelly Roller 183<br />
Calendar Spreads: Briefly 184<br />
Time Spread Value 185<br />
Time Spread Price Arc as a Pricing Tool 186<br />
Warning: Don’t be a Sucker 187<br />
Diagonals 188<br />
Exercise/ Assignment 190<br />
Double Diagonals, Straddle-Strangle-Swaps, 193<br />
Calendarized Wing Spreads 190<br />
Double Time Spreads or Strangle Swaps 194<br />
Conclusion 195<br />
©1996-2006 Charles M. Cottle RiskDoctor@RiskDoctor.com
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