Risk Free Butterfly Option Strategy Adjustment? YEP!

http://optionalpha.com - Trading butterflies (and especially broken wing butterflies) give us a lot of flexibility in how we can exit to maximize our potential win rate. Because we trade BWB's much more often than a standard butterfly we will focus this video on adjustments for these strategies. With a broken wing butterfly we are able to buy back the embedded put/call spread should the position move favorably in one direction and leave a remaining risk-free butterfly for a potential one time big profit. While this is a more advanced type of adjustment it's very easy to follow and I will explain it step-by-step in this tutorial. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. hi Kirk. great video, i have yet to apply this strategy to my trading. i have a question regarding butterflies though, is it possible to convert a short bear call credit spread that went ITM to a short butterfly to migitate risk/loss? thanks for everything!
2. this was one of your better videos. very good