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.