How To Trade A Broken Wing Butterfly With Weekly Options

As you have noticed, there are a TON of gimmick strategies out there in the options education space. I must admit, some of these gimmick strategies do sound cool…but there is nothing special or unique about them.

Traders in the CBOE pit would never yell out a quote for an Iron Condor. When they wanted to get into a structured trade like that, they would tell the market marker what they were buying and selling and just call it a package or unit.

Most of the names currently were actually created by the brokerages to make it easier to market options education to you and I.

Anyways, I was inspired to create an option strategy video myself. And even though this might sound like one of those gimmick strategies…IT’S NOT!

The broken-wing butterfly not only sounds cool…it’s pretty damn effective. As you might already know, traditional butterflies are great…however; they do have their draw-downs.

For example, once a stock reaches the “middle strikes” it becomes a market neutral trade…and then a waiting game.

But what if you had a directional bias…with a range in mind? Well, that’s where the broken-wing butterfly comes in.

You see, it’s got a similar risk to reward profile as a traditional butterfly (which is awesome)…but you can skew the risk and profit potential in the direction you have the strongest conviction in.

What’s a Broken Wing Butterfly & How To Trade It With Weekly Options

 

…In the video, I cover

• What a broken-wing butterfly is
• Why it’s different from a traditional butterfly
• How you can trade broken-wing butterflies using weekly options
• Way’s to structure them for a directional trade
• A real life example using Apple Options
• And much…much more

I’d love to hear your thoughts after you’re done watching. As always, I’ll be hanging out in the comments section below.

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