Navigating Different Volatility Regimes With The OTM Butterfly
Image Source: Pexels
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 TradeOTM Iron Fly
The Problems With The Iron Condor