A Weekly Options Strategy With Remarkable Potential

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Traders would love to have a strategy that can be employed each week but does not require much maintenance and can be a source of additional income for day and swing traders in many cases. The weekly double broken wing butterfly trade that we discuss in this example is an interesting example of the kinds of weekly trades available once you have a grasp of how options income trading works.

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*SMB Disclosures* https://www.smbtraining.com/blog/smb-disclosures

Comments

Aryaman Sinha says:

See you know those profit potential zones, man whilst
super money makers I would be sweating if the market rallied or tanked to where my loss zones are.

Superzan Games says:

The strategy seems like an iron condor with extra steps

Akupara says:

If you had done this over the past 2 months your account would have been wiped out. As of 12/25/2019
From 3080-3223 as we speak.

David Kamnitzer says:

Why did you prefer this to an iron Condor?

Michael Kofman says:

Are strategies you use on the SPX transferable to trading the SPY? It would be more digestible for smaller accounts.

TooLegit ToQuit says:

Given that options are getting cheaper and cheaper, a trade like this is now more affordable …

Farley Johnson says:

Thanks Seth! Great information. I’ve been trading Equities for a year now , so indexes are new to me.
I’ve had my A*s handed to me about 12 times this year with assignments on the short sides of some Put Credit Spreads. Having watched plenty of videos on this situation and probably assignment s.
Is it any different trading Indexes ?
Thanks again

GrainyChicago1 1 says:

How would this trade work in a market like Feb, Oct, Dec 2018?Also , Jan and Feb 2019 on the call side? Prolly not very well.

Neil Caporaso says:

Very nice and clear example. However, if you wake up tomorrow morning and a trade deal is announced (SPX up 30+) or a bank fails (SPX down 30+), the index may zoom past the profit zone into a sickening loss with little warning or ability to adjust. Newbies make sure you are strong swimmers before diving off the deep end to get the nickels at the bottom!

Andreas Kunst says:

Nice idea, however you unfortunately complete ignore the impact of commissions in your analyses. Trading 40 Contracts for such a system generates substantial costs which eat up a big chunk of your gains, in particular when you need to close the contracts again…. I would really like to see a more realistic picture.

Mike M says:

Thank you.To you last point about making additional money as long as it doesn't go too far past the highest call or put. Can you provide a bit more detail around that to better understand where that would become a negative for us? Again, thx.

Belvendran ranjan says:

I tried i am not getting the actual price on weekly bases

Ed Riley says:

Great video thank you

Bevan Clark says:

Thanks Seth, great video and strategy.

ultra instint says:

What is your solution for canadian that are with interactive brokers. Margin for this kind of trade are ridiculously high + IB add their own house margin which Return on margin not worh it

Christian Garudas says:

THANKS A LOT! I do have one stupid question: What happens if I close the trade before expiration date [e.g. when S&P reaches 2983] ?

Thomas Bartz says:

Thank you Seth, this is valuable content. Are there any forums that you could recommend that cover options trading?

Lukas Niklaus says:

Hey
I love those videos. Some of the best trading education out there.
However… the courses you guys sell… are overpriced… by a lot…
I love you guys! I respect you guys immensely.
But i dont think these prices are justified.

Mark McNair says:

I also have questions about adjustments. For instance, what does the P&L look like if the market spikes up or breaks down 8 or 9 points before expiration? Is there a way to close out of the positions entirely before exp and still make a profit?

Ed says:

Do you do any adjustments if the market moves against you or do you just set it and forget it?

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