Valvoline (Fall '24)

In this meeting, we learned about the butterfly spread option strategy used to generate profits where prices are expected to remain relatively stable. It involves buying one call at a lower strike price, selling two calls with a higher strike price, and buying one call with an even higher strike price (the same can be used with puts). It's basically a bull call spread and a bear call spread put together. Per the votes on Valvoline (VVV), we decided that the stock would have less volatility. Since people wanted to go all-in, we will be taking up a large long butterfly spread position on the underlying (pray for us).