LD Lossdog Research
strategy

Broken Wing Butterfly

7 matching records.

Trade idea

MCL Broken Wing Butterfly

The broken wing butterfly trade in MCL (micro crude oil) is designed to profit from a range-bound movement in crude oil prices. The trade involves buying a 74 strike and selling 70 and 72 strikes, while also selling 82, 84, and 88 strikes. The maximum profit is $220 if crude oil stays within the expected range, while the maximum loss is $180 if the price moves beyond 82. The trade has an 81% success rate, making it a high-probability strategy for beginners.

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StrategyBroken Wing Butterfly
AssetFutures Options
ExpirationAugust
Time horizonUntil August expiration
Entry / triggerCrude oil price below 82
Target / exit84
Invalidation / stopCrude oil price above 82
SpeakerUnknown
Structure / legs
  • 74
  • 70
  • 72
  • 82
  • 84
  • 88
Risks
  • Crude oil price moves beyond the expected range
  • Market volatility
  • Liquidity issues in micro contracts
Long ButterflyBroken Wing ButterflyMCL
high confidenceVerify in video at 38:21 ↗
Trade idea

SPX broken_wing_butterfly

The broken wing butterfly strategy on the put side with 5 and 10 delta strikes is a high-probability trade that can be rolled out when tested. This strategy is suitable for traders who believe the market is trending upwards, as it allows for rolling the put side if necessary. The trade involves using two separate put spreads if the entire spread cannot be rolled due to platform limitations.

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Strategybroken_wing_butterfly
Assetindex
Expiration1DTE
Time horizonshort-term
Entry / triggertested
Target / exitroll the vertical part of the trade
Invalidation / stopmarket moves against the trade
SpeakerEugene
Structure / legs
  • 5 delta put
  • 10 delta put
Risks
  • market moves against the trade
  • platform limitations may restrict rolling the entire spread
putindexBroken Wing ButterflySPXshort-term
high confidenceVerify in video at 31:09 ↗
Trade idea

Microsoft broken wing butterfly

A broken wing butterfly is proposed for Microsoft, with the long legs at 345 and 315 strikes, and the short leg at 335. The trade is expected to profit from a limited downside move, with a small credit of 30-35 cents. The strategy is designed to capitalize on a potential 90% pop and 100% IVR, with low risk and low reward. The trade is suitable for a short-term horizon, with the expectation that the market will move within a narrow range.

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Strategybroken wing butterfly
Assetstock
ExpirationAugust
Time horizonshort-term
Entry / triggerMicrosoft trading at 385
Target / exit42
Invalidation / stop345
SpeakerScott
Structure / legs
  • 345 strike
  • 335 strike
  • 315 strike
Risks
  • limited upside potential
  • risk of market movement beyond expected range
longEquitylongBroken Wing ButterflyMSFTshort-term
high confidenceVerify in video at 42:29 ↗
Trade idea

SPX broken wing butterfly

The speaker suggests a patent-pending broken wing butterfly strategy for SPX, which is a complex options strategy that involves buying and selling multiple strike prices. The idea is to capitalize on the market's volatility and rotation, with the potential for profit if the underlying index moves within a specific range. The strategy is considered a last-minute opportunity, suggesting it is a short-term trade.

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Strategybroken wing butterfly
Assetindex
Expirationlast night
Time horizonshort-term
Entry / triggerlast night
Target / exitnot specified
Invalidation / stopnot specified
SpeakerTony
Structure / legs
  • short strike
  • long strike
  • short strike
Risks
  • The strategy is complex and requires a good understanding of options trading.
  • The market could move outside the expected range, leading to losses.
  • The strategy is not suitable for all traders, especially those with a long-term investment horizon.
neutralindexneutralBroken Wing ButterflySPXshort-term
medium confidenceVerify in video at 28:00 ↗
Trade idea

SPX Broken Wing Butterfly

The broken wing butterfly is a high probability trade with an 80-90% chance of profit. The trade involves buying a put at 6650, selling two puts at 6755, and buying a put at 6800. The risk-reward ratio is favorable, with a $34 credit on $5,000 risk. The trade is synthetically long a butterfly and short a put spread, providing protection against downside while capturing upside potential.

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StrategyBroken Wing Butterfly
AssetIndex
ExpirationLast night
Time horizonMonth
Entry / triggerPrices at 6755
Target / exitMax profit of $5,000
Invalidation / stopIf the price moves beyond the expected move of $330
SpeakerTony
Structure / legs
  • Buy 6650 put
  • Sell two 6755 puts
  • Buy 6800 put
Risks
  • Market movement beyond expected range
  • Volatility changes
  • Liquidity issues
BullishindexbullishBroken Wing ButterflySPX
high confidenceVerify in video at 28:00 ↗
Trade idea

SMH broken wing butterfly

The speaker is considering a broken wing butterfly trade on SMH, which is at its highs. The trade involves buying the 700, 710, and 730 strikes for a credit. The speaker notes that the trade has a high probability of profit (87%) and a high implied volatility ratio (IVR) of 93 due to semiconductor stocks. However, the speaker acknowledges that the trade has a high risk-reward ratio, with a potential risk of $930 and a potential reward of $1070. The speaker is cautious about entering the trade due to the stock's current position and the potential for a pullback.

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Strategybroken wing butterfly
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggerstock at its highs
Target / exitcredit for a few pennies more than the initial trade
Invalidation / stopif the stock pulls back significantly
SpeakerSpeaker
Structure / legs
  • 700
  • 710
  • 730
Risks
  • The stock could pull back significantly, reducing the trade's profitability.
  • The trade has a high risk-reward ratio, which could lead to significant losses if the stock moves against the trade.
shortEquityshortBroken Wing ButterflySMHshort-term
medium confidenceVerify in video at 19:26 ↗
Trade idea

SPACEX broken-wing butterfly

The broken-wing butterfly strategy was executed with a 25 cent credit, targeting a $18 expected move. The trade is designed to profit from a range-bound stock, with the 235 strike as the maximum profit point. The trade was adjusted for a $10 drop in stock price, and the speaker suggests further adjustments to the strike prices based on market conditions.

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Strategybroken-wing butterfly
Assetequity
Expirationweekly
Time horizonshort-term (1-2 days)
Entry / triggerstock price at 215
Target / exit235
Invalidation / stopstock price moves beyond expected range of $18
SpeakerTom
Structure / legs
  • 230
  • 235
  • 245
Risks
  • Volatility contraction
  • Unexpected price movement beyond expected range
  • Margin requirements
shortequityshortBroken Wing Butterfly
medium confidenceVerify in video at 20:51 ↗