We often mix up our trading by establishing broken wing butterflies and in this segment we show you how we can take advantage of the market moving against us to establish a risk free trade. This segment will open your eyes and have you thinking about the markets in a whole new way.
A snapshot of the original September 2, 2015 AMZN Broken Wing Butterfly was displayed. The snapshot included the quantity, month, position, price and total credit received. A graph of AMZN’s price from August 8th to September 26 was displayed. The entry date and the first adjustment date were shown on the graph.
What we did next was the key to the trade. A second snapshot of the AMZN trade was displayed showing what we did. The snapshot included buy/sell, quantity, expiration date, position, price and total debit paid.
A final snapshot on October 5th of closing the adjusted AMZN position for a profit was displayed. The snapshot included the quantity, adjusted position, price and total credit received, along with a chart of the price of AMZN and the adjustment dates.
We also did something similar in the SPY. A snapshot of the original September 3, 2015 SPY Broken Wing Butterfly was displayed. The snapshot included the quantity, month, position, price and total credit received.
The market then had some movement and presented us with an opportunity. A second snapshot of the SPY trade was displayed. The snapshot included buy/sell, quantity, expiration date, position, price, total debit paid, overall credit received and current P/L.
Time passed and the market moved again. A final snapshot on of closing the adjusted SPY position for a profit was displayed. The snapshot included the quantity, adjusted position, price overall credit received and total P/L, along with a chart of the price of SPY and the adjustments.
Watch this segment of “Anatomy of a Trade” with Tom Sosnoff and Tony Battista to examine Broken Wing Butterflies in AMZN and SPY, to learn the details of the adjustments they did and why, so when you are given an opportunity by the market you will have the tools to take advantage of it.
This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.