Know How to Write Long Call Butterfly Strategy in Python

Well if you think implied volatility is very high. That would be good for this strategy. This butterfly trade is selling volatility.

If you mean illiquidity of single stock options, I agree with you, they are not good candidates for many options trades (though the stocks themselves are liquid). Plus a lot of these random multi-leg options trades, I don't know why they get talked about so much maybe its the cute name, I don't think they would be worth doing if you don't have the software and resources of a professional trading firm.

If the author of this link is new to python and wants to use hypothetical option trades to practice drawing graphs in python who am I to judge.

In case of interest, technically a butterfly trade with real prices can be profitable. If you guess right. Here are real quotes, delayed 15 minutes, you can use S&P 500 options to check it. http://www.cboe.com/delayedquote/quotetable.aspx

> Are people actually making money this way?

Maybe a couple but most are not. A lot of the quant programmy stuff online seems to be more resume fodder than anything else.

> and not losing any money ever?

That's asking too much. There's always risk outside of pure arbitrage.

Like any strategy it is not infallible. It is a tool to be used in the right situations. If you have a contrary view of volatility (how much a security will move in a given time, up or down) then this can be helpful. Remember this strategy can be reversed as well, so whether you believe it will not move much, or definitely move a lot, you can engineer it to work for you.

But if you EVER hear anyone say a financial strategy is no risk, they are incorrect at best, and actively lying at worst.