Overview: The video below makes reference to the July 29, 2016 expiration $SPX Broken Wing Butterfly. The trade was started with 85 DTE, scaled into, and then adjusted due to an open profit. The video below talks about a potential Reverse Harvey adjustment for the trade. Ultimately, I opted for a less aggressive adjustment and […]
Overview: Lately it seems like there has been a lot of talk about Broken Wing Butterflies in the options world. There are several popular BWB “income” trades like the Rhino, Road Trip, and Kevlar. Those trades are typical income trades where you’re beginning with some initial structure and then adjusting it based on market movement, […]
Overview: Nobody likes getting into a trade only to have market rip against you, but sometimes it happens. Those of you who follow me on Twitter or keep an eye on my results know that I had a touch of unlucky entry timing for the July CIB. The trade was opened with 55 DTE on […]
If you’ve been trading butterflies for any period of time, you’ve probably wondered if you set up your butterfly trade correctly. Did you make the wings wide enough, too wide, and, of course, how wide “should” your butterfly trade wings be spaced? Understanding the problem: The challenge with wing width on butterfly trades is that […]
Overview: We’ve been in the April5 CIB for a little while now and we’re 24 days to expiration, but we still haven’t hit the target profit. In the video below, we walk through some adjustments that have the potential to significantly widen the profit zone on the trade while protecting our open profit. The adjustment […]
Overview: The April 2016 CIB was closed on March 3, 2016 for around the maximum loss (-$688 Gross, -$805 Net, or a roughly -3.92% return on the sample account). In hindsight, I would have preferred to take a slightly smaller loss and need to be more conscious of commissions when creating a rough loss estimate. Please note […]