Stratagem Trading – Newton’s Cradle and Shortfly & Condor

When you see a short butterfly being hedged with a cheap vertical spread and the risk-graph goes from have large risk to no-risk and a long vertical at completely different strikes, it looks like a Newton’s Cradle game.

Creating a short butterfly (or condor) can be a very favorable alternative to closing out a vertical spread that is moving the wrong way.

What You’ll Learn In Newton’s Cradle and Shortfly & Condor

Class Recordings (~12 hours)

Handout of Class Slides

Bonus Materials: Three-Legged Box Example (7 pages) and Layer Spreads (17 pages)

Bonus Class Recordings:

• New Game Plan
• Live: 3-Legged Box
• Box Spread
• Newton’s Cradle and Short Fly Primer
• Advanced Butterfly Sale
• Practical Short Fly Example

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