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).
Follow me on Twitter @CboeSib
The S&P 500 just hit a new record high and the VIX has fallen to its lowest level in months. Scott Bauer joined Business First AM to explain why that combination is a signal to act and why traders should be buying protection right now while it is still cheap.
Read Article
Mike Shorr sat down with Schwab Network’s Trading 360 team for another Big 3, and this one’s all about balance. One name he’s fading, one he’s letting sit still, and one he’s chasing on the AI trade’s coattails.
Read Article
Scott Bauer joined the IBKR Podcast this week to break down what the softening labor market means, which economic report he thinks has the most potential to move markets, and the one risk he says investors are getting numb to but cannot afford to ignore.
Read Article
Scott Bauer joined the IBKR Podcast this week to break down what moved markets last week and what investors need to watch heading into the next stretch of earnings season. From lagging inflation data to big tech CapEx concerns, Scott did not hold back.
Read Article
The Dow rose more than 1% to a record closing high on Thursday ahead of the long holiday weekend as a softer-than-expected U.S. jobs report eased worries about interest rate hikes, while another sharp drop in chipmaker stocks weighed on the Nasdaq. The second half of 2026 kicked off this week much the same as […]
Read Article
A renewed sell-off in technology stocks grabbed headlines this week. The Nasdaq index fell 4.5%, closing lower 5 days in a row, led by a large 5.5% decline in the so-called Magnificent 7 mega cap names. Meanwhile, the post IPO exuberance around SpaceX appears to be fading, with shares now down 25% from their peak. […]
Read ArticleWe choose to let our members and students speak for themselves. We do not actively solicit testimonials, no compensation has been paid for any testimonial, and testimonials are not necessarily representative of the experience of all students. All monetary claims made in testimonials that you see depicted in our marketing material have been verified by Prosper Trading Academy and attested to by the members that have given them. Verified testimonials encompass “experience” reviews that highlight the personal experiences of working with our team and “performance” testimonials where we verify trading success of students who have enrolled in our programs.Given the broad reach of the internet, testimonials and reviews of our programs that we have not been able to verify can be found on various websites across the internet which are beyond our editorial control. While we do very much enjoy hearing positive things from our students and it is critical to our mission that everyone is satisfied with their journey with Prosper, we encourage you to take both verified and unverified testimonials for what they are.