Do you find butterflies to be reliable, lower risk income generators when used in combination with other positions? Are you solely a butterfly trader or do you trade other strategies as well? How long have you been trading them?
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Butterfly traders
- Thread starter darkshogun
- Start date
Do you find butterflies to be reliable, lower risk income generators when used in combination with other positions? Are you solely a butterfly trader or do you trade other strategies as well? How long have you been trading them?
There is nothing special about a butterfly, or any other type of spread. It is simply a way to express one's view of the underlying asset's price/vol. I wouldn't regard a fly as a strategy, especially not a rolling "income generator."
I wouldn't regard a fly as a strategy, especially not a rolling "income generator."
Why not? Have you researched it or used it? A neutral strategy seems like a really good idea when you can't pick market direction.
+1There is nothing special about a butterfly, or any other type of spread. It is simply a way to express one's view of the underlying asset's price/vol. I wouldn't regard a fly as a strategy, especially not a rolling "income generator."
When I see an opportunity following a trend, I make a price target and almost always try to leg in so the fly cost me nothing to put on. I like weeklies for this stuff. But they are not considered to be income generators. For income try some credit verticals or calendar spreads.Do you find butterflies to be reliable, lower risk income generators when used in combination with other positions? Are you solely a butterfly trader or do you trade other strategies as well? How long have you been trading them?
When I see an opportunity following a trend, I make a price target and almost always try to leg in so the fly cost me nothing to put on. I like weeklies for this stuff. But they are not considered to be income generators. For income try some credit verticals or calendar spreads.
I like to throw on a fly whenever we get a spike in vol....but it's all in the management
Of it...as to whether it makes money, definitely not an income strat in my book.
There is nothing special about a butterfly, or any other type of spread. It is simply a way to express one's view of the underlying asset's price/vol. I wouldn't regard a fly as a strategy, especially not a rolling "income generator."
Free monies. Om nom nom.
Perhaps that is the case when trading a 5-wide fly in aapl with 30 min to expiration. There are many other ways to trade a fly aside from playing the pin game.
Option traders call them a "lottery ticket".
Low probability, low Risk to Reward ratio.
Carl