Butterfly Pricing Across Different Expirations
Update: 2025-09-09
Description
On today’s From Theory to Practice, Dr. Jim focuses on the market reaction to the large downward revision in jobs gains in the overall economy. Then, he points everyone to his Short Call Spread in GLD, a trade that after only a day is already underwater - which means that had you done the opposite, you’d be in a great spot. Lastly, Dr. Jim works through the differences in Butterfly Spreads with various expirations, showcasing how the cost of the strategy actually decreases as you give it more time.
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