Hi all: I have read that many of you enjoy trading butterflies, but I have not found any suitable candidates yet. I want to show an example; please enlighten me what I am missing. Thank you immensely! ----- Platform and data source: IB TWS Options Trader, ivolatility.com Underlying: Goodyear Tire and Rubber (GT) Reason: GT's stock chart show slow rise over 26 weeks; therefore, in one month, it may not rise much; if I choose middle strike slightly higher, then in one month, GT may actually be very close to the middle strike. I plan to use long put butterfly in the month of April. Data from IB (after hours on sunday evening, only Last Prices are available): GT is at $31.19 Apr 30 put: $0.50, 37% IV Apr 35 put: $3.90, 40% IV Apr 40 put: $8.85, 65% IV In April, IB showed that only these three put have values, and Apr 40 call has no data and thus I cannot do call butterfly. (10PM Sunday now.) My problem with the butterfly in this example, as with my other potential butterflies, is the adverse risk:reward ratio and narrow profit range. In this example, the total debit is (0.5 + 8.85 - 2 * 3.9) = 1.55 not counting bid-ask spread. Break evens are 31.55 and 38.45, or a range of 6.90. The maximum profit is 5, with only 5:1.55 ratio. If bid-ask spread and commissions were included, it is more likely to be 5:2.5 or 2:1. Because the price now is at 31.19, I am already in the loss territory. My question is, how do you butterfly lovers do it? Should I consider volatility smile/skew/term structure? What else am I missing? Once again, thank you for any suggestions.