A butterfly spread is an options strategy that combines bull and bear spreads, with a fixed risk and capped profit. These spreads are intended as a market-neutral strategy and pay off the most if the underlying asset does not move prior to option expiration. They involve either four calls, four puts, or a combination of puts and calls with three strike prices. The upper and lower strike prices are equal distance from the middle, or at-the-money, strike price. Using butterfly spreads on a monthly/weekly basis has several advantages. First, an out-of-the-money (OTM) butterfly spread can almost always be entered at a cost that is far less than would be required to buy 100 shares of the underlying stock. Secondly, if the trader pays close attention to what they paid to enter the trade, they can obtain an extremely favorable reward-to-risk ratio. Butterfly spreads provide advanced traders with consistency of small returns. They are generally low-risk strategies and their maximum loss is limited to the net premium paid for the butterfly option. With correct implementation and continuous monitoring, using butterfly spreads on a monthly/weekly basis can lead to improved profits. with this system, you will Learn how to make consistent returns on your option trades EVERY month. This is a complete step-by-step guide on how to create consistent returns trading Butterflies. We reveal a trading strategy that is commonly used by Hedge Funds, Market Makers and Floor Traders.
How to generate consistent monthly/weekly income from Butterly spread
How to limit your risk to the net cost of the spread, while having a high potential profit if the underlying asset stays near the middle strike price at expiration.
Learn how to profit from a neutral market outlook with a low probability of large price movements.The brain dead way to set up this trade
Very low to zero trade maintenance required
How to use calls or puts to create butterfly spreads with different directional biases
How to use monthly/weekly options to create butterfly spreads with shorter durations and lower time decay
Use Option Greeks (Delta, Theta, Gamma, Vega) to measure and monitor your options strategies and understand their exposure to known risks
How to manage your risk using monthly/weekly options.
Boost your monthly/weekly returns with very quick profit trades
Turning losing trades into Winners.
..... And Much More
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