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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Want to find out how Scott can give your summer trading a potential edge? Let’s see if you’re a fit for his program. Fill out this quick application to get started. Summer trading has historically been slow and relatively uneventful. Some might even call it boring. However, Scott Bauer believes it could be much different […]
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Charlie Moon joined Schwab Network to break down a live options trade on KLA Corp — a semiconductor equipment maker that just did something he’s been waiting for. Here’s the setup and exactly how he’s positioning.
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Scott Bauer already has four names on his radar to kick off summer trading… but he believes it could be much different this year. Scott was on Business First AM, where he highlighted the stocks that are on his radar, and the factors he believes could shape the market this summer. The analysis, insights, and […]
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Equities finished the holiday-shortened week with a more complicated message than the headline indexes suggested. The Dow Jones Industrial Average pushed to new records this week, helped by industrials and financials, while the broader market wrestled with a hawkish Federal Reserve, rising 2-year yields, and an increasingly narrow technology trade. The week’s major geopolitical headline was […]
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Major indices changed course in a meaningful way this past week, ending in the green despite significant initial volatility. For the week, the S&P 500, Dow and Nasdaq-100 all gained just under 1%. Headline whiplash about developments in the war between the U.S. and Iran ended with hope that an agreement is in the offing. […]
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SpaceX (SPCX) closed its first day of trading up 19 percent. The biggest IPO in market history is now public, and traders are already asking the same question: What’s next for SPCX? The hype was real, but Charlie Moon believes the more interesting story is just starting to unfold. He recorded a breakdown, with his […]
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