Modidor

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Dictionary Says

Definition of 'Modidor'

An options strategy that consists of buying and selling out-of-the-money calls and puts and is designed to lock in investor returns above or below a designated trading price. The modidor is a modified version of the iron condor, but differs in that there is just one breakeven price. It resembles a broken-winged butterfly when charted.
Investopedia Says

Investopedia explains 'Modidor'

Whereas an iron condor is best used in a volatile environment in the hope that a security will trade within a discernible range, the modidor allows for profits regardless of an issue’s volatility. With a modidor, the underlying stock must simply move above (in a bullish scenario) or below (in a bearish scenario) a specific breakeven price.
Search results for

'Modidor'

  • Options Trading: The Modidor Spread

    http://www.investopedia.com/articles/optioninvestor/10/modidor-spread.asp
    Options Trading: The Modidor Spread. ... Figure 2: Risk Curves for a Modidor.
    Source: Optionetics Platinum. The primary advantage of a ...

  • Trading Strategies Articles | Investopedia

    http://www.investopedia.com/articles/tags/trading_strategies/
    A comprehensive list of Investopedia’s educational articles covering the topic of
    Trading Strategies in reverse chronological order by date published.

  • Trading Strategies Articles | Investopedia

    http://www.investopedia.com/articles/tags/Trading_Strategies/
    A comprehensive list of Investopedia’s educational articles covering the topic of
    Trading Strategies in reverse chronological order by date published.

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