I was just wondering Do any of you trade these? Where do you get in? Directionally (so just OTM and play direction) Or do you buy Near or ATM and let them decay?
I use them just for the decay. They are usually my last strategy whenever going through everyone. If a condor, calender, or DD does not fit a certain stock or index then I will use the butterfly. They work pretty well this those stocks with $5 strikes and low vols that you really can get a good OTM condor on or front and back month vols differ to much for a good calender or DD. Id do use a broken wing butterfly as my directional to neutral play. I have shyed away from verticals and usually if I am looking for a direction, I will just put on a broken wing butterfly in that direction. It is a better risk reward for me than just using an vertical.