Hello Investors,
We had technical difficulty during our live meeting. We lost the first half of our recording but were able to record the 2nd half of class today. We discussed different styles of butterfly structures and placed a trade on Eli Lilly (LLY) that followed that process. This is a high risk trade because the stock is a very expensive one at 725/share. Our trade is as follows:
Buy to open: LLY Oct 3rd (weekly) 700.00 strike put (ratio of 1)
Sell to open: LLY Oct 3rd (weekly) 670.00 strike put (ratio of 2)
Buy to open: LLY Oct 3rd (weekly) 630.00 strike put (ratio of 1)
Debit: 3.20
Probable risk = 3.20 or $320.00 per spread
Max risk = 13.20 or $1,320.00 per spread
Max reward = 26.80 or $2,680.00 per spread
Have a great week!