Great blog! I have been trading butterflies lately on individual stock names and trying to learn about them. I’m fairly new to options and love the added dimension of volatility. You mention in your blog that skew is important for flies since you’re short the body and long the wings. So a flat skew would [...]
Much like the condor or iron condor, the butterfly spread is another popular trade among options traders. This spread also has an “iron” version (a spread that incorporates calls & puts) and has the potential to earn more than the iron condor at a quicker rate. The larger and quicker returns also come [...]
Came across a trade idea from Steve Place today. I haven’t really discussed how I like to structure ATM of directional butterflies, although, I do have a few trade examples under my Butterfly Spread category on the right.
Here’s the basic premise of his idea:
UA reported earnings that were pretty [...]
The post to the original trade may be found here.
I took this trade off today for a profit near the close for 3 reasons:
Priceline (PCLN) has been bumping into resistance the last couple of days and any fast move could have swiftly taken any profits this trade had already made. I [...]
Today, I am testing out a new that I’d like to add to my playbook. The idea came from the SMB Capital blog, specifically, from Greg Loehr’s posts on the broken wing butterfly. I like the butterfly over credit spread or iron condor because the Priceline (PCLN) volatility skew, as I track it, [...]
- Quick Take On The Markets & Watchlist
- Markets Keep Exploding And Options Watchlist
- Reader Question: Butterflies and Implied Volatility Skew
- What Led The Market This Week? (And Watchlist)
- Defensive Sectors Leading The Market & Watchlist
- Breaking Down This Week’s Winners & Watchlist For Next Week
- What Sectors Are Leading The Market?
- Market Strength and My Watchlist
- Implied Volatility Skew and What It Tells Us
- An Interesting Take on Selling Implied Volatility Here