New to option trading?
Not sure what the difference is between a butterfly, a condor, or a mouse?
(Hint: there is no strategy called “mouse”)
In this video I open up one of my personal trading accounts to show you 4 trades that are all of a different strategy. We have a naked put in oil futures options, a butterfly in Berkshire Hathaway, an iron condor in LVS, and a straddle in LVS. All four trades are doing well.
Watch the video to see how they look on the risk graphs as well as how they are made up and work.
In the optiongenius portfolio we do not do naked puts or straddles, but we do a lot of iron condors and some butterflies. In times of low volatility with the VIX below 30 these non directional strategies work wonderfully. In high volatility markets, they can work as well but with adjustments and a quicker trigger finger to take profits quickly.