The 10 Second Overview:
The video below goes through the open $IWM Options Put Butterfly positions for the December 2014 and January 2015 expiration cycles. The December expiration has been very challenging for neutral options trading, but the recent sell-off left the position in great shape. The January position looks very good for only being open a couple of days. I’m watching for a potential break of the 114 level in $IWM, which will be a signal that things are getting a little more bearish.
Check out the video below for a more in depth discussion and please post any questions you have in the comments at the bottom of this post. Enjoy: