Schaeffer's Option Coach: The Iron Butterfly with Exxon Mobil

* Reuters is not responsible for the content in this press release.

Tue Jun 30, 2009 3:22pm EDT 

CINCINNATI--(Business Wire)--
Welcome back to another in a series of articles that examines the thought
process behind a variety of option strategies using stock, index, and/or
exchange-traded fund (ETF) options. This column will examine the iron butterfly,
the pros and cons of putting on an iron butterfly, and the profit and loss
potential of this position. So, let's jump into this interesting strategy… 

…After doing some digging around, our theoretical trader has decided that Exxon
Mobil (NYSE: XOM) could make for an interesting long iron butterfly trade. The
security has hovered around the 70 level during the past several months and
appears likely to remain pegged to that region during the next few weeks.
Furthermore, the equity is hitting resistance at its declining 10-month moving
average. XOM has logged only one monthly close above this trendline since the
start of 2009. 

To continue reading this article, click here:
http://www.schaeffersresearch.com/commentary/content/the+option+coach+iron+butterfly/observations.aspx?click=home&ID=93839&source=businesswire





Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
jdrake@sir-inc.com



Copyright Business Wire 2009
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.