Butterfly Spread

If you’re new to our site, make sure to watch our FREE Online Option Income Trading Video by Going Here. Thanks for visiting! Our Nov 10 Skewed Butterfly trade gave us 12% this month. We love the ‘magic bows’ on these trades that can many times produce much better profits than even what our flat [...]

Closed our Nov 10 Iron Condor Iron Butterfly Trade for just over 4% profit. To learn more about how to trade these particular trades join our new newsletter. addthis_url = ‘http%3A%2F%2Fwww.butterflyspreadblog.com%2Fbutterfly-spread%2Fnov-10-rut-iron-butterfly-iron-condor-closed%2F’; addthis_title = ‘NOV+%E2%80%9810+RUT+IRON+BUTTERFLY+IRON+CONDOR+CLOSED’; addthis_pub = ”; Technorati Tags: Butterfly Spread, Credit Spread, Iron Condor, iron condors, option strategies

When I first began trading the iron condor, my game plan was to leave the trade on all the way to the bitter end. After I placed the trade, I would just leave it be until expiration day where the options would expire worthless and disappear into option heaven. Back then I believed this was [...]

This was our second RUT Butterfly we put on this month. This trade was placed with RUT trading around 658. Immediately upon placing the trade, the index, along with the rest of the market, started a big down move, eventually traveling more than 10% before bouncing back up some today. Despite the move, thanks to [...]

ABOVE: Position as we start to unwind it. Profit target hit. ABOVE: Left on one of our extra long calls as lottery ticket. Our profit goal is locked in. Closed out our July Butterfly / Iron Condor for just under 9% profit. addthis_url = ‘http%3A%2F%2Fwww.butterflyspreadblog.com%2Foption-trades%2Fjuly-10-butterfly-spread-iron-condor-closed%2F’; addthis_title = ‘July+%26%238217%3B10+Butterfly+Spread+%26%238211%3B+Iron+Condor+Closed’; addthis_pub = ”; Technorati Tags: Butterfly Option, [...]

Our July Iron Condor / Butterfly Spread is off and running. So far so good as we have a profit already and have our ‘ whipsaw curbs’ in place while retaining a good theta. Stay tuned… addthis_url = ‘http%3A%2F%2Fwww.butterflyspreadblog.com%2Foption-trades%2Fjuly-10-rut-butterfly-spread-iron-condor-opened%2F’; addthis_title = ‘July+%E2%80%9810+RUT+BUTTERFLY+SPREAD+%26%238211%3B+IRON+CONDOR+OPENED’; addthis_pub = ”; Technorati Tags: Butterfly Option, Butterfly Spread, Credit Spread, iron butterfly, [...]

Closed out our last June Iron Condor Butterfly Spread today for right under a 5% gain. Todays big down move in reaction to employment numbers put the position right at the sweet spot at the open. Rising vols initially hurt the position a bit, however as the morning progressed, what appeared to be some friday [...]

During the ‘flash crash’ where the dow sunk 1000 points we had an iron butterlfy position on that performed remarkably well thanks to a simple, cheap, way out of the money put adjustment we had made earlier in the day. Taken at 11:40 AM A couple hours before the big drop, we put on a [...]

When you look at a risk graph of the butterfly spread, you can see that the butterfly payoff is tremendous – especially when compared to other option income spread strategies such as the iron condor, the credit spread, the diagonal, double diagonal, the calendar, double calendar, etc. Depending on where the wings are placed on [...]

Butterfly Option Spreads are one of the most ‘robust’ option trades of the ‘main’ option spread income strategies. In other words, the butterfly spread can withstand more ‘abuse’ from a volatile market than say the iron condor, diagonal, or calendar, – and still come out smelling like a rose. One reason for this has to [...]