Advanced Options Strategies | Butterflies | 5-16-19

If a trader is confident about a price point a stock will be at in the future or concerned about existing positions moving against them, some traders will consider a butterfly trade. This potentially low-cost, high-return, but low-probability of success strategy offers investors a hedge at adverse price points, but the attractive return potential has to be seen in light of at the difficulty of forecasting a price point. Education Coach Ken Rose will introduce you to the beneficial impact of falling volatility and time decay on butterflies along with probabilities and risk-to-return ratio considerations when setting up the trade.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options http://www.optionsclearing.com/about/publications/character-risks.jsp before investing in options.

To see webcast schedule as of April 6th - https://education.ameritrade.com/content/PDF/webcast_schedule_040618.pdf

Видео Advanced Options Strategies | Butterflies | 5-16-19 канала Trader Talks Webcasts from TD Ameritrade