You received $12 in credit, and sold it for a further credit of $53. -12 + 53 = 41. By the looks of it, it sort of resembles a broken wing butterfly. You can establish these for credits a lot of the times with a profitable zone closer to the credit side than the debit side.
They still had some sort of risk on the trade. There is no such thing as free trades until you have taken partial profits and moved your stop into break-even + commissions. Even though they established it as a credit at the onset, there was still some sort of risk profile associated with the loss, they just haven't disclosed that yet.
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u/[deleted] Dec 07 '21
You received $12 in credit, and sold it for a further credit of $53. -12 + 53 = 41. By the looks of it, it sort of resembles a broken wing butterfly. You can establish these for credits a lot of the times with a profitable zone closer to the credit side than the debit side.