Navigating Different Volatility Regimes With The OTM Butterfly

By Ernie Varitimos of Trader of Futures

Chief Evangelist and Educator for PatternCast • Sep 23, 2023 at 3:59 PM EDT

In this brief video, I delve into the world of zero day to expiry trading as I reveal the nuances of the out-of-the-money butterfly trade.

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In this brief video, I delve into the world of zero day to expiry trading as I reveal the nuances of the out-of-the-money butterfly trade. Learn how to harness rapid premium decay, optimize trades in diverse market conditions, and navigate various volatility regimes.

00:07:16

Timestamps:

00:00 - Intro
00:20 - OTM butterfly and profit expectations
01:30 - High probability issues
02:11 - What the pro traders do
04:08 - Volatility regimes
05:05 - The butterfly is vega negative
06:59 - Outro

More By This Author:

Exploring The Iron Butterfly Trade
OTM Iron Fly
The Problems With The Iron Condor

Disclaimer:

This is an educational service, not financial advice. Our goal is to turn you into a professional trader through coaching and mentoring and a powerful strategy, methods and continuous improvement process.

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