Lesson Overview

Butterfly Adjustments

Trading butterflies (and especially broken wing butterflies) give us a lot of flexibility in how we can exit to maximize our potential win rate. Because we trade BWB's much more often than a standard butterfly we will focus this video on adjustments for these strategies.

With a broken wing butterfly we are able to buy back the embedded put/call spread should the position move favorably in one direction and leave a remaining risk-free butterfly for a potential one time big profit. While this is a more advanced type of adjustment it's very easy to follow and I will explain it step-by-step in this tutorial.

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