Recorded: December 9, 2009.
Running Time: 73:27
CBOE Options Institute head instructor Jim Bittman joins thinkorswim’s Wednesday Trader’s Lounge, trading education sessions with top market experts. In this online trading seminar, Bittman explains using unbalanced (or broken wing) butterfly option strategies and how to apply them in trading. Options strategies like this with several options legs are usually for more advanced traders as well as having much trading experience specifically with options. Unbalanced butterfly strategies are usually used to split option strikes further apart than standard butterflies as well as not have a debit for the spread like standard butterflies.
In this seminar, Jim Bittman teaches a variety of strategies from those with defined risk to those with undefined risk. Jim starts out with an iron condor example as the basis for this lesson, then compares the strategy to a two-sided custom butterfly.