XYZ stock is trading at $295/share. A trader buys a long butterfly in XYZ stock by buying a 280 strike call option for $27, a 320 strike call option for $4, and selling two 300 strike call options for $10 each, a total of $11.00. What is the trader's maximum possible loss per share? (enter 4.00, not 400, for one spread).

Answer rating: 100% (QA)

To calculate the traders maximum possible loss per share we need to consider the pre... View the full answer