Do you find butterflies to be reliable, lower risk income generators when used in combination with other positions? Are you solely a butterfly trader or do you trade other strategies as well? How long have you been trading them?
There is nothing special about a butterfly, or any other type of spread. It is simply a way to express one's view of the underlying asset's price/vol. I wouldn't regard a fly as a strategy, especially not a rolling "income generator."
Why not? Have you researched it or used it? A neutral strategy seems like a really good idea when you can't pick market direction.
When I see an opportunity following a trend, I make a price target and almost always try to leg in so the fly cost me nothing to put on. I like weeklies for this stuff. But they are not considered to be income generators. For income try some credit verticals or calendar spreads.
I like to throw on a fly whenever we get a spike in vol....but it's all in the management Of it...as to whether it makes money, definitely not an income strat in my book.
Perhaps that is the case when trading a 5-wide fly in aapl with 30 min to expiration. There are many other ways to trade a fly aside from playing the pin game.
Two wk. example of Butterfly adjustments. Adjustments orders were placed in advance and "Contingent" on the underlying price. I don't think "Buy & Hold" is the way to go either. Carl Enjoy Life! It's limited, you only get as much as you take.