An Options Strategy That Can Return 100% Overnight

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Traders like to be in and out of the market quickly with high returns, naturally. There is an options strategy known as the earnings iron butterfly which provides the opportunity for just that. In this video we cover the details of the earnings iron butterfly as a possible addition to your trading arsenal for a small amount of your overall trading capital.

#ironbutterfly #stockmarket #optionstrading

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

Comments

bmoraga01 says:

Seth, this was excellent. Well explained AND illustrated. Very helpful and much appreciated.

Finto Malto says:

I'm not understanding how $722 capital invested and $974 returned equals 130% profit. You gained $252 on $722 invested per butterfly, wouldn't that be 35% profit? Still an awesome return, but you're not more than doubling your money.

Piet Hein says:

Could you explain how the $722 risk was arrived at? From the example, it almost seems you can't lose.

allen everhart says:

Hi Seth, great video. How did you decide to pick the wings on that iron butterfly?

Joseph Mendozza says:

Thank you for this insightful strategy.. I am thrilled to have found SMB . I hope you and your team had a relaxing day off on July 4th.🇺🇸

Konika Cariapa says:

One could do a short strangle and benefit from the volatility crush post earnings

Ryan H says:

Looking at the implied volatility & expected move are critical to this strategy.. and not mentioned at all? If IV was expecting 4-5% move you wouldn't want to make this trade..

Calabaza says:

I like it but is there particular stocks that are good for this at earnings? large caps or tech stocks?

Z B says:

great video. the 60 point wing is about 3% of the stock price. why you choose 60 point as the range of wing? what are the general rules? why the transaction of this trade is so expensive? does the cost of this trade make it less likely to be a winner?

Brandon B says:

Very under-rated options strategy; collect money from the gamblers. This and directional credit spreads are all that I trade.

imaginesagi says:

JR Smith confused look

Constantin Ungureanu says:

This is GOLD big THANK YOU!

Chong Gui Zhao says:

Is it safe to assume that I may have to factor in the cost of not being able to sell the long put? How would I know if the options are at a high enough premium? Do I just look at IV or is there a way to see historic prices for the option? Would this still work in a relatively low VIX environment, like we are in now? Is this still profitable if it doesn't land on one of our long calls or puts…or relatively close?

rsa108ify says:

I traded PUT SPY calendar, (bought one Aug 280 PUT for $300 and Sold July 280 PUT for $150). Spy went up away from my 280 strike, but am down $80 so far.The later date option, lost so much value, that even the shorter PUT option expires worthless, I still lose money. Not sure how calendar would be profitable. I have watched your video on that actually. Thanks.

Ashley Reeves says:

Scalping platform in uk?
These are rare to find🧐

Joel-Udeh Hugo says:

An educative and a very informative video.👍

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