option trading strategies four assets

Four Assets Buying a Butterfly SpreadBuy Call Sell Call Sell Call

Inputs

Buy or Sell: 1 = Buy, -1 = Sell 1Type: 1=Call, 2=Put, 3=Stock 1Exercise Price $25.00Asset Price $8.00

Buy or Sell: 1 = Buy, -1 = Sell -1Type: 1=Call, 2=Put, 3=Stock 1Exercise Price $35.00Asset Price $10.00Third Asset (Med-High Exer Price)Buy or Sell: 1 = Buy, -1 = Sell -1Type: 1=Call, 2=Put, 3=Stock 1Exercise Price $35.00Asset Price $4.00Fourth Asset (Highest Exer Price)Buy or Sell: 1 = Buy, -1 = Sell 1Type: 1=Call, 2=Put, 3=Stock 1Exercise Price $45.00Asset Price $10.00

OutputsStock Price At Maturity $0.00 $25.00 $35.00 $35.00 $45.00 $80.00First Asset Profit -$8.00 -$8.00 $2.00 $2.00 $12.00 $47.00Second Asset Profit $10.00 $10.00 $10.00 $10.00 $0.00 -$35.00Third Asset Profit $4.00 $4.00 $4.00 $4.00 -$6.00 -$41.00Fourth Asset Profit -$10.00 -$10.00 -$10.00 -$10.00 -$10.00 $25.00Total Profit -$4.00 -$4.00 $6.00 $6.00 -$4.00 -$4.00Lowest Exer PriceMed-Low Exer PriceMed-High Exer PriceHighest Exer Price

OPTION TRADING STRATEGIES

First Asset (Lowest Exer Price)

Second Asset (Med-Low Exer Price)

$0 $20 $40 $60 $80

-$40

-$20

$0

$20

$40

Spreads and Combinations - Four Assets

First Asset Profit

Second Asset ProfitThird Asset Profit

Fourth Asset Prof-itTotal ProfitLowest Exer PriceHighest Exer Price

Med-Low Exer PriceMed-High Exer PriceHighest Exer Price

Stock Price At Maturity

Pro

fit

Buying a Butterfly SpreadBuy Call Low-High: Buy Call, Sell Call, Sell Call, Buy Call

Yes Buying a Butterfly SpreadNo Writing a Butterfly SpreadNo Other Strategies

$25.00 $25.00 $35.00 $35.00 $35.00 $35.00 $45.00 $45.00

-$40.00 $40.00-$40.00 $40.00

-$40.00 $40.00-$40.00 $40.00

$40 $60 $80

Spreads and Combinations - Four Assets

First Asset Profit

Second Asset ProfitThird Asset Profit

Fourth Asset Prof-itTotal ProfitLowest Exer PriceHighest Exer Price

Med-Low Exer PriceMed-High Exer PriceHighest Exer Price

Stock Price At Maturity

Pro

fit