by Ted Nino
The butterfly spread is one of the most powerful and reliable option trading strategies around.
In lazy, quiet market conditions there is very little - if anything - to do to manage these trades other than sit there in your chair and watch your trading account grow as your 0 day risk graph line rises steadily up into the air. In fact, it's so hypnotizing that it's actually sort of difficult to stick to your rules and take the darn thing off when you pass through your profit target for the month.
Then again - during the quieter times in the stock market - most likely the same is true for the other 'option income' strategies - such as the <a href="http://www.youtube.com/watch?v=VF9l_zPnRaI">weekly options</a> iron condor, the calendar spread, the diagonal - and the double calendar.
What distinguishes the butterfly spread from those other methods - is the way it acts in the more wild and crazy months.
Most of the normal 'bread and butter' option income trades - like the iron condor, the calendar, and the diagonal - have been somewhat difficult to trade ever since the big crash in 2008. Can they still be traded - and can they still produce profits? Absolutely. However - in order to do so effectively one needs be on their toes - and there is just more management involved - and stress - and work.
Out of all of those strategies (and I've had the 'pleasure' to trade them all through this period) the butterfly spread - and in particular the iron butterfly and the broken wing - is the one option strategy that has been the most robust - the most consistent - the most reliable - and the one that has given me the least amount of problems - and the most amount of profits.
And yes, even though I do love iron condors - and I do love calendars - and double calendars - and double diagonals... well, yeah, they're okay too.
However - the butterfly spread?
Oh good gracious.
Here - I get all teary eyed and emotional just thinking about it.
Hold on - allow me to pull myself together here...
All right. Here's the deal...
If a no good, slimy faced, greasy rotten crook broke into my trading lab - pointed a pistol at me - and made me choose just 1 option trading strategy I could play for the rest of remaining life - without a doubt I would pick the butterfly spread.
I love you <a href='http://www.weeklyoptionstrading.org'>Weekly Options</a> Butterfly Spread .
Oh man...where's a tissue...
Ted is an option selling crazy person - mainly enthusiastic about trading the <a href="http://www.youtube.com/watch?v=8j7JdysThY8">iron condor</a> . Visit <a href='http://www.weeklyoptionstrading.org'>Weekly Options</a> Site to find out more about his plain paint by the numbers blueprint for trading this strategy for consistent profits.
---------------------------------------------------
You are receiving this because you signed up for it on 2011-11-14 from IP 41.73.17.218
To fine-tune your selection of which articles to receive, just login here:
http://www.uniquearticlewizard.com/bloggers/
using your username:
To unsubscribe please use the following link:
http://www.uniquearticlewizard.com/unsubscribe.php?mail=ecora125goz.forexonlinetrading@blogger.com&code=57028967c79f10c848a64ed30c3bfa30
---------------------------------------------------
---------------------------------
New Unique Article!
Title: Butterfly Spread - Trading At Gun Point
Author: Ted Nino
Email: theeinfoco@gmail.com
Keywords: butterfly spread,options trading,stock trading,stock,trading,forex trading,forex,currency trading,stock market,investing,investment,finance,personal finance
Word Count: 444
Category: forex
---------------------------------
No comments:
Post a Comment