Core Income Butterfly Options Trade Entry Analysis Video


The video below gives you an idea of what I look at when I’m getting ready to enter a Core Income Butterfly (CIB) trade. The video walks through technical analysis of the Russell 2000 Index ($RUT) where we look at multi-year trend lines, areas of consolidation, and where I think the market might go. From there we step into the Analyze Tab in ThinkOrSwim and evaluate a potential trade for the February 2016 expiration. At the time of recording, the February cycle had 63 days to expiration so it’s still a little early to get into a trade.

Note that the video is provided for educational purposes only and is not a recommendation to take a trade.


  • Great video Dan. Thanks for putting this together. I look forward to following all your 2016 CIB trades.

    • Dan

      Thanks Jonathan! Unfortunately I wasn’t able to get filled on the trade I wanted yesterday morning before the sell off, but I’m going to try again today and Monday. 2016 might be a very interesting trading environment. We’ll see . . .