Multi-Leg Options Packages: Spreads, Flies, Condors, Rolls, and Risk Reversals
A guide to interpreting complex options packages and why package intent matters more than a single highlighted leg.
Why package context matters
A single leg can look bullish, bearish, rich, or cheap in isolation while the full package has a different purpose. Multi-leg context is required to interpret spreads, calendars, diagonals, butterflies, condors, ratios, boxes, and risk reversals.
Structure versus intent
Structure describes the package shape. Intent describes why it likely traded: opening, closing, covering, rolling, replacing a hedge, or financing. OptionsTape.Trade estimates both when the tape provides enough evidence.
Broken-wing flies
An uneven butterfly or broken-wing fly has asymmetric wing widths. It can express a directional view, monetize skew, or finance convexity, so the net package economics matter more than the most visible leg.
How to ask an LLM
Ask the model to explain the entire package, not just the headline contract: identify each leg, infer structure, infer likely closing/opening evidence, and summarize net premium, risk direction, and volatility edge.