After he explained the method a bit more I thought about all the benefits of this floor trader’s method of making butterfly’s work for us including:
No adjustments necessary
The strategy neutralizes the Greeks
It provides regular, steady and consistent income – if done according to directions
The positions have very little maintenance
Volatility does not impact the positions negatively – and in fact – can help on entry
It’s a safe way to put large chunks of money to work, and get outsized returns without the usual high-risk of other types of positions
Monitoring positions – even with multiple expirations – is E A S Y
It’s essentially a non-directional strategy – no technical analysis required
Now there was an additional strategy he mentioned called a ‘broken wing’ butterfly which are the ones I’ve been using for the past 6 months (before I started with ‘b-bombs’) and in this course I talk about them first because they are still relatively a good ‘set and forget’ trade. All the above benefits apply to broken wing butterfly’s too, except that the margin requirements are higher, it is a ‘directional’ strategy and some basic technical analysis does increase the probability of success.
But I included it because it does provide yet another way to generate option income, with relatively low risk, on a consistent basis.
Get David Vallieres – The Better Butterfly Course download
$49.00
