Options Education - Got a Website / Book / PDF You Like? Post It Up

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ironchef said:
In general for most of us retail traders, it is better to keep things simple. Since 2013, I made very good money with a very simple strategy: Using options as a leverage (instead of margins), betting that the underlying will appreciate much more than the cost of the options. Will it continue? In my opinion, no.

Highest leverage options: Long DOTM, short duration calls/puts. But unless you have profound knowledge about the underlying, it is like buying a lottery ticket, your chance of coming out ahead is about zero.

Butterflies are very interesting plays, you can set them up as bearish, neutral or bullish depending on where you put the belly/body. They can be set up as high probability or high leverage depending on the body width, you can combine multiple butterflies to take advantage of skew and microstructures.... However, because there are so many moving parts, it is not easy for some of us retails to win consistently.
More...

https://elitetrader.com/et/threads/leveraged-options.358773/page-2#post-5388827

Thanks for a cogent concise straightforward view on the butterfly.
If you have more of these nuggets, post 'em up somewhere, anywhere, .... here.

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Butterflies are very interesting plays, you can set them up as bearish, neutral or bullish depending on where you put the belly/body. They can be set up as high probability or high leverage depending on the body width, you can combine multiple butterflies to take advantage of skew and microstructures.... However, because there are so many moving parts, it is not easy for some of us retails to win consistently.
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