May 5, 2020

How Does A Broken Wing Butterfly Work?

A broken wing butterfly sounds like a complicated strategy. From the outside it maybe. But if you look at what this strategy really is, it is not so complicated. Check out the video below to see what I mean.

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

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December 6, 2024

The Broken-Wing Butterfly: A Hidden Gem in Options Trading

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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October 2, 2024

12 Best Prop Trading Firms (That Actually Work In 2024)

In this article, we’ll dive into the 12 best prop trading firms we observe on the market right now. Many prop trading firms often offer a variety of unique perks and opportunities to prove your trading capabilities in a variety of markets. There are a lot of proprietary trading firms out there, and it’s often […]

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June 18, 2024

T+1 Settlement: What It Means for Traders and Investors

The trading space is about to experience a significant paradigm shift that reportedly promises to enhance market efficiency and liquidity. On Tuesday, May 28th, the United States, Canada, and Mexico all transitioned from the T+2 to T+1 settlement cycle. This change is poised to reshape trading by significantly expediting the time between executing a trade […]

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December 6, 2024

The Broken-Wing Butterfly: A Hidden Gem in Options Trading

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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May 8, 2024

What Is Delta In Options Trading?

Understanding the Delta of an option is crucial for both new and seasoned traders. It’s one of five specific calculations called “Greeks,” which help measure specific factors that could influence the price of an options contract. Delta is a metric that helps you gauge how much the value of an option contract is expected to […]

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March 28, 2024

Wait! There Is An Options Greek Called Rho?

Out of all the Greeks in options trading, Rho is capable of providing uniquely critical insights that others cannot offer. Rho measures an option contract’s susceptibility to changing interest rates. We’ll explain how Rho by defining its specific functions, how interest rates impact options trading, and cover some pertinent scenarios. What is Rho in Options […]

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