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An Adjustment To Widen The Butterfly Profit Zone – Video Post

Overview:

We’ve been in the April5 CIB for a little while now and we’re 24 days to expiration, but we still haven’t hit the target profit.  In the video below, we walk through some adjustments that have the potential to significantly widen the profit zone on the trade while protecting our open profit.  The adjustment effectively converts the income butterfly to a broken wing butterfly.

The idea is that we shouldn’t just think about trades as being a static set of rules and there are countless adjustments to morph our positions into something more favorable.  Enjoy . . .

  • albert

    i like your idea Dan
    thanks for sharing.. 🙂

    • Dan

      Sure thing Albert, glad it helped. I don’t usually like to get this close to expiration and I also wanted to let a little more profit build up in the position. This gives us a directionally safer way to do that and hopefully we’ll get closer to the target.

      • albert

        yeah, 30-21 days are tricky conditions for adjustments

        i might do similar move in the future if conditions permit
        resizing the width based on changed expected move is very smart

        have a nice month Dan