This winning trade episode shows an iron butterfly options spread on the S&P 500 index that is comprised of a bearish call spread, a bullish put spread, and a call option. It is called the X4V22 trading strategy*. The actual capital in the trade was kept low and the profits were high while trading through a very severe whipsaw.
00:00 Traders welcome!
00:39 What is options trading?
01:10 S&P 500 index trading strategy introduction
02:23 Analytical software explanation
04:28 Iron Butterfly options spread
04:31 Call option
04:35 Options trading example
04:40 DTE
05:33 Puts
05:52 Buy call option
06:23 Risk management
06:49 Implied volatility
08:16 Capital – planned vs. actual.
08:53 Price chart
12:04 Implied volatility – shifting
12:11 P&L drop
13:26 P&L big day increase
15:07 Call option movement
16:30 Capital; parameters
18:14 Whipsawed
19:26 P&L final
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*The result shown is from real-time, hypothetical trades such as those shown in the Options Trading for Income weekly webinar. Simulated trades are believed to be represented as accurately as possible, however, live results may have been different. The result is shared as an example for educational purposes ONLY.
