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X_TRADER®

Displaying the Butterfly-Condor Matrix

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The Spread Matrix also displays Butterflies and Condors. A Butterfly is a trading strategy that involves three outrights. A Condor is a trading strategy that involves four outrights. Most of the procedures and features for the Butterfly/Condor Matrix are the same as the Spread Matrix.

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 trades.:

  • 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.

You generate a Butterfly/Condor Matrix using an existing Spread Matrix.

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

Follow these procedures to generate a Butterfly Condor Matrix:

To generate a Butterfly/Condor Matrix...

  1. Generate a Spread Matrix.
  2. At the top of the Spread Matrix click the Butterfly button.

To view a Butterfly/Condor Matrix in the same window...

  1. Generate a Spread Matrix.
  2. Add a tab to the Spread Matrix.
  3. Generate a Spread Matrix in the new tab.
  4. At the top of the Spread Matrix click the Butterfly button.