i have some questions on iron butterflys, the reason i am asking is because some one i know is trading them with a website and claims to be doing very well. he wont tell me anything other than pony up the $2k dollars like he did. as i am a just-post-depression-era born person there is no way i will shell out $2k to get info i can get on elite trader for free. so is any body here trading them with success? i tried a search on here, without a decent result.
<iframe width="420" height="315" src="http://www.youtube.com/embed/uGmkM4v9AaY" frameborder="0" allowfullscreen></iframe>
For free info go on youtube and search for sheridanmentoring videos... IB are one of the strategies he uses... There are many videos on this.
Just make sure that you don't think that you can trade the IB every month. Try and wait until conditions are right: IV declining, flat skew, etc.. Then put your fly on with wings at 1 standard deviation (set for 18-20 days since you won't keep it to expiration), flatten your delta and most importantly know when you are going to get out. Some people are big fans of adjusting a butterfly but I have found unless the conditions are as good to put on a new fly as the original one, if it hits your breakeven get out.