When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine. The term sounds really complicated.
It does not have to be. If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower vertical spread against it.
Click the video below to see how we break down the profit and loss effects in our position in PayPal (Ticker: PYPL).
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Scott Bauer joins Diane King Hall on the Charles Schwab Network to share 3 stocks he’s watching this week.
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Options trading offers huge potential rewards—but it also comes with serious risks that can be mitigated. I’ve seen traders time and time again jump in without fully understanding the mechanics, leading to costly mistakes that wipe out their accounts overnight. President Trump’s new tariff policies are shaking up global markets, adding another layer of uncertainty […]
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Options traders employ numerous strategies to achieve their goals in the market, and the broken-wing butterfly is a particularly useful technique to have at your disposal. This guide will explain the strategy in detail and show you how it can potentially be leveraged in various situations to take advantage of the market environment. Want My […]
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Despite being up almost 18% since April, Exxon Mobil stock (XOM) has seen a lot of ups and downs in 2025. Although XOM has been in an overall uptrend since the spring, Scott Bauer says there’s been a “sell the rally” trend—not just in Exxon Mobil stock—but in the broader oil space. Scott featured Exxon […]
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The straddle vs strangle debate has challenged many options traders. What do they mean? How do they work? How much risk in each one? While both strategies have big differences, they also possess some notable similarities… …including trading scenarios where each one can offer unlimited risk. Scott Bauer broke down the straddle vs strangle topic […]
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Powered by news of its popular diabetes and weight loss drugs, Eli Lilly stock (LLY) has been on a tear in 2025. The stock is up over 38% this year, whose price crossed $1,000 for the first time ever in November. The big run Eli Lilly stock is on has a lot of traders wondering: […]
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