Freesteel Blog » From the You don’t understand sht department

From the You don’t understand sht department

Sunday, February 19th, 2012 at 3:47 am Written by:

Popped into the Santa Monica library yesterday and thumbed through a copy of the March 2012 issue of Technical Analysis of Stocks & Commodities

Got a question about options?

Question: Being relatively new to options, I’m paper trading various strategies… One position that’s stumped me is a long butterfly using two contracts…

Answer: …In regards to your dilemma, the modification is often called a “broken wing butterfly.” The profit center of the butterfly, just like a regular fly, is the purchased spread minus the initial debit. But the bear call spread of bull put spread sold is designed using a wider strike distance. The result is the associated risk with that vertical will siphon the long vertical’s profits by the extra difference of the larger spread if the shares jump above or below that vertical’s purchased outer wing.

The other pages of this magazine contained large amounts of program code, the like of which I had not seen since the computer games magazines of 1983.

What are you supposed to do? Type it in? Some of it doesn’t even work, because it’s in pseudocode.

Wouldn’t it be cool if they used ScraperWiki?

1 Comment

  • 1. Mikey replies at 28th February 2012, 9:59 pm :

    So, are retriwten summeries not counted no matter what? I just did a proper summery for the Planetary preview where there was originally just information on where it previously appeared, but no actual details on what the plot was about.Also, there wouldn’t happen to be a way to spy on the competition and see how many summeries others have written, is there? Or would that ruin the fun of competition?

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