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Broken Wing Butterfly Options Spreads (2024 Guide)

Broken Wing Butterfly Options Spreads (2024 Guide)

Posted December 11, 2024 at 10:15 am

Scott Bauer
Prosper Trading Academy

Broken Wing Butterfly Options Spreads – Maximize Your Profit Potential with Defined Risk!

In this video, we dive deep into the Broken Wing Butterfly options spread strategy—explaining what it is, how it works, and when to use it to your advantage. The broken wing butterfly is a powerful strategy that allows traders to skew risk and reward by adjusting the spread’s symmetry, making it ideal for traders with a directional bias. If you’re looking to improve your trading knowledge, manage risk, and increase your profit potential using options, this video is for you! Watch along as we explore the nuances of this advanced options strategy. My name is Scott Bauer, and I’ve been trading for over 30 years. I’m a former Goldman Sachs VP and today I’m going to teach you how the real professionals use Broken Wing Butterfly Options Spreads to find potential profits in the markets, while effectively managing risk.

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IMPORTANT NOTICE: Trading Stock, Stock Options, Cryptocurrencies, and their derivatives involves a substantial degree of risk and may not be suitable for all investors. Currently, cryptocurrencies are not specifically regulated by any agency of the U.S. government. Past performance is not necessarily indicative of future results. Prosper Trading Academy LLC provides only training and educational information. By visiting the website and accessing our content, you are agreeing to the terms and conditions.

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This material is from Prosper Trading Academy and is being posted with its permission. The views expressed in this material are solely those of the author and/or Prosper Trading Academy and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options (with multiple legs)

Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. "Characteristics and Risks of Standardized Options"

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