The butterfly spread is a very interesting way to have an alternative to the debit spread that has a really big pay off on the upside. You don't need to come up with any big, heavy margin or anything. And so it's very low cost to buy that upside right tail insurance for an explosive move. But at the same time, if nothing happens, then you're only risking that 20 cent outlay.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode