Option Block 392: The Great Broken Wing Butterfly Debate

Trading Block: A mild day on the street. Oil futures slide on Saudi price cut to U.S. VIX shunned as few bumps seen for S&P 500 at years end.

Odd Block: Call rolls in Opko Health Inc. (OPK), calls trade in Avago Technologies (AVGO), and calls trade in Adobe Systems Incorporated (ADBE).

Xpress Block: Insight into oil and gas. The Xpresso newsletter.

Mail Block: Listener questions and comments

• Question from Anthony Fields - I was just reading through a book (I will not name them here to give them a free plug) that blamed the crash in 2008 on derivatives. What is your take on stuff like that? Drive you crazy or is there some truth?


• Question from Milano Fan - Hello to all members of the all-star panel including but not limited to uncle mike, the viceroy, the rock lobster, the greasy meatball and the mighty host himself. I am working my way through the back catalog of episodes. I am somewhere around episode 250. I have a lengthy commute and probably a few flights a week so I should burn through the rest in a couple of months. I have heard a number of panelists mention a strategy called a broken wing butterfly on multiple episodes. I am a little confused about this. What exactly is it? Is there a standard construction for this type of strategy or is it more of a number of similar strategies being lumped under the broken wing umbrella? Hope you guys can answer this. It would be hilarious to hear my letter read on the mail block. Last - I am planning a trip to Chicago early next year. Which pizza place should I hit? I know you guys treat pizza like religion in Chicago. Happy trading.