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You are here: Home / Amibroker / Long Butterfly Spread – Amibroker AFL code

Long Butterfly Spread – Amibroker AFL code

March 6, 2014 by Rajandran 2 Comments

The Long butterfly spread is a neutral strategy that is a combination of a bull spread and a bear spread. It is a limited profit, limited risk options strategy. There are 3 striking prices involved in a butterfly spread and it can be constructed using calls or puts.

Long Butterfly spread is constructed using Buy 1 ITM Call ,Sell 2 ATM Calls, Buy 1 OTM Call.the long butterfly can be constructed by buying one lower striking in-the-money call, writing two at-the-money calls and buying another higher striking out-of-the-money call. A resulting net debit is taken to enter the trade.

Long Call Butterfly Spread
Butterfly Spread

 

Payoff Diagram for Long Butterfly Strategy
Long Butterfly

Procedure to Setup Long Butterfly Spread

1.Download Butterfly Spread.afl to Amibroker/Formulas/Options Spread directory
and Unzip the file. Create Options Spread Directory if it doesn’t exist.
2.Open Amibroker->File->Open New Blank Chart
3.Now on the Left Pane goto Charts->Option Spread and drag and drop Bear Iron Condor Spread to the blank chart.
4.Bingo! you got the Spread chart.
5.To Change the spread right click over the charts and goto Parameters where you have control to change the ITM call/put strike A, ATM call/Put Strike B, OTM Call/Put Strike C prices as shown below

Long Butterfly Option Spread Parameters

Supported Strategies
1. Long Call Butterfly
2. Short Call Butterfly

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Filed Under: Amibroker Tagged With: Amibroker AFL code, Long Butterfly Spread, Long Call Butterfly Spread, Long Put Butterfly Spread, Option Strategy

About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

Comments

  1. Zain says

    March 7, 2014 at 2:40 pm

    Hi Rajan,,
    Do u have any afl on pivot point..?

    Reply
    • Rajandran R says

      March 9, 2014 at 11:15 pm

      Have one with camarilla pivot point. You can find in our library section https://www.marketcalls.in/library

      Reply

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