Option Trading Strategy: Setup a Butterfly Spread

Option Trading Strategy: Setup a Butterfly Spread ★ SUMMARY ★ Hey it’s Sasha Evdakov founder of Rise2Learn. In this video I want to share with you exactly behind What the Butterfly is when it comes to Trading Options and why you may want to trade the Butterfly. The Butterfly’s just a fancy name for a type of spread because it looks like a butterfly. You can trade a butterfly to the upside you can't really tell downside or you can trade it to collect option premium butterfly’s a very effective strategy because it uses a lot less margin and which means a lot less risk to be able to trade those larger dollar value stocks. First I want to share with you exactly what the butterfly is and what it looks like on a regular diagram and then I want to show you in the trading program and how to set up the butterfly. Posted at: http://tradersfly.com/2014/05/option-trading-strategy-setup-butterfly-spread/ ★ SHARE THIS VIDEO ★ https://youtu.be/YemFOAfsZ8Y ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! FREE 15 DAY TRIAL TO THE CRITICAL CHARTS -- http://bit.ly/charts15 GET THE NEWSLETTER -- http://bit.ly/stocknewsletter STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome

Comments

1. Hi great video. If a have a sold a vertical credit spread and it went ITM, can i convert that to butterfly? Thanks!
2. hi Sasha, excellent video, wondering what trading software it is in your video?
3. Great video Sasha, Im starting out to learn Option, will spend most of my day today watching your videos.. Thanks for sharing..
4. kk
5. hello...(: what broker and website did u use in that video?thanks
6. I have a question (:. what broker/website were you in that video?
7. Hi Sasha, thanks for your informative videos. I have a question for you, I am trying to apply same Butterfly strategy to Swaption. Now, as per my understanding rate at the expiration of contract will behave same as strike price in Option. Can you please confirm if I am on the right track, if not please correct me.
   
   Regards,
   Gaurav
8. We are a big fan of Sasha, we have seen most of all his videos
9. Hi, Sasha, i have a question. lets assume the current price for apple is $100. with the butterfly spread strategy, you sell 2 call option at strike price @$100, and buy 1 at $90 and $110 respectively. my concern is, 1. if the stock price go beyond $110, there is only 1 call option @$110 to cover the loss. 2. why set up a call option at $90 strike price? How is it protect the account from losing money. Thanks in advance
10. another great video sasha thank you. few question 1) why do we get a credit when trading Iron butterflies? is the credit received from iron butterflies is better then the debit paid for it? thank you for your great work, keep the tutorials coming
11. Excellent
12. Great Video! I learned something new today.
13. you speak very well and not too fast
14. Thank you, Sasha...I'm learning tons....you certainly know what you're doing! I'm starting out...and,..I'm going to your website to see what's happening!
15. Sasha, after watching many option trading videos on you tube some of them on butterfly strategy your is probably one  of the best; however, I could not find an answer to my question how far from the stock price would you want to put the short strike price?  Is it one SD, 1/2 SD? what about the wings? how  far it would make sense to put the break even points given the IV? what is your rule of thumb if I may ask. Regards, follower
16. Great video , as usual....HOWEVER....
    IT IS ALWAYS NICE FOR YOU TO START OFF AS TO WHY WE WOULD WANT TO TRADE A BUTTERFLY,,,,,RIGHT OFF THE BAT....
    THANKS
17. Excellent video
18. Do you have a facebook?
19. The types of people with big enough accounts to do these trades are not the type of people who have to use youtube to learn how.
20. great instruction and Videos thanks Sasha subbed 
    can you talk about the probability for options in TOS