Kite Spreads for Options Traders: Part 1

Mark Wolfinger kicks off a blog series on the little-known kite spread trade

What's a kite spread, anyway?

 For example...

Total kite spread commission: $14.45

index options that incur additional fees

Why the 920/930 spread? Why do we sell three spreads?

What's the worst-case scenario of this trade?

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at

additional risks and multiple commissions