Risk covering strategy to protect downside risk in long stocks by purchasing put against it. Although this does provide a portfoliohedge, performance has shown to be very poor due to the high hedging cost when buying the protective put(s).
A type of butterfly spread which is skewed to create reward in a single direction within a current range and has risk if the underlying moves in the correct direction, but beyond the expected move implied by current option prices. This is achieved by setting up a normal butterfly spread but then skipping, or moving further out of the money, the final protective put or call. [click to read more]