Double Broken Wing Butterfly

Discussion in 'Options' started by jones247, Sep 20, 2009.

  1. Teycir

    Teycir

    I don't wait to get too close to short legs, I take profit when we are close to them, get out if we go to quickly in their direction. I took 450 usd profit from my position of May when we reached minus 2600 on NDX. The trick is to make a debit broken wing, not a credit one.
     
    #21     May 10, 2012
  2. Twinsen

    Twinsen

    Would be a broken wind condor a better strategy? Its debit spread can be broader than one of a butterfly. Though a bit more expensive.

    And what you think about selling butterflies (-1 +2 -1), the price needs to go away from strike price to profit. On volatile markets it could work probably.
     
    #22     Jan 5, 2013
  3. Teycir

    Teycir

    You can buy OTM butterflies if you want to play volatility, better Risk/Reward than short fly. +1-2+1 2XSTD away from current price
     
    #23     Jan 5, 2013
  4. Twinsen I have started doing this primarily to the upside on the SPX tight 5 pt flies or BWB...simply because set has an upside bias anyway so If I'm short a call spread when the market goes down I'll add the long call spread to create the short fly....it has worked pretty well in this market.
     
    #24     Jan 5, 2013
  5. 2rosy

    2rosy

    backspread
     
    #25     Jan 5, 2013
  6. This.
     
    #26     Jan 5, 2013