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X_TRADER®

Butterfly Condor Matrix Overview

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A Butterfly is a trading strategy that involves the following trades.

  • Buy (or Sell) of one contract in near Calendar month;
  • Sell (or Buy) of 2 contracts in a far month;
  • Buy (or Sell) of one contract in an even later month.

The combined price of the two contracts being sold (bought) subtracts from the combined price of the two contracts being bought (sold).

A Condor is a trading strategy that involves the following traders.:

  • Buy (or Sell) of one contract month in the first month of the strategy;
  • Sell (or Buy) of one contract in a far month;
  • Sell (or Buy) of one contract in a further month;
  • Buy (or Sell) of one contract in an even later month.

The pricing of the Condor Matrix =

 (Month 1 – Month 2) – (Month 3 – Month 4)

Note: Implied data does not display for Condor Matrices because NYSE Liffe does not match implieds from Condor Matrices.