The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Why enter uneven or skewed iron butterflies?” There's probably two reasons why you would want to enter an uneven or skewed iron butterfly. The first reason why you might enter one of these is because you have some sort of expectation that the market is more likely to go in one direction versus the other. For example, if you thought that a stock had a higher chance of moving up after a move down, then you might enter a skewed iron butterfly that reduces some of the upside risk should the stock actually move up from the price point that it's at right now. Again, one of the reasons why you could enter one of these skewed positions is basically the assumption of where the underlying security is going to go after your trade entry. Maybe you have some technicals that you’re going to use. Maybe you have some sort of charting patterns that you see developing. Well, whatever the case