Butterflies, Condors (Sideways)

Question 1

What are the steps for a Butterfly with calls?

Answer 1

1. Buy one lower strike (ITM) call.
2. Sell two middle strike ATM calls.
3. Buy one higher strike (OTM) call.

Question 2

What are the steps for a Butterfly with puts?

Answer 2

1. Buy one lower strike (OTM) put.
2. Sell two middle strike ATM puts.
3. Buy one higher strike (ITM) put.

Question 3

What are the steps for a Condor with calls?

Answer 3

1. Buy 1 lower strike (ITM) call.
2. Sell 1 lower middle stike (ITM) call.
3. Sell 1 higher middle strike (OTM) call.
4. Buy 1 higher strike (OTM) call.
   (The stock should be between the two middle strike prices.)