I am wondering if anyone has experience combining a double calendar (back to back expirations) spread with a butterfly spread.
I was told that adding a butterfly spread at each break even point would 1. help reduce further loss. 2. Smooth out the p/l graph to have a more consistant profit between the short month strikes.
Any advice or comments are appreciated.
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Hello,
I am wondering if anyone has experience combining a double calendar (back to back expirations) spread with a butterfly spread.
I was told that adding a butterfly spread at each break even point would 1. help reduce further loss. 2. Smooth out the p/l graph to have a more consistant profit between the short month strikes.