Bullish strategy wins despite big down move! The V32 trading strategy took on some pain this month but came back with a great return. Click here or in the video below to follow along with this trade in episode 57 of the Winning Trade.
Description of this trade: The V32 is a shorter-term, market neutral, bullish bias broken wing butterfly strategy for the Russell 2000 (RUT) index. Follow this trade on our Options Trading for Income by the Guidelines weekly webinars.
A broken wing butterfly trading structure is selling options at a particular strike and then buying options at a higher and lower strike. Click here for a full length video on Becoming A Broken Wing Butterfly Master!
Minimum Capital Required: $3,500 per trade
Example size: The maximum amount of capital we would put in this trade example is $35,000, or 10 times the minimum capital.
Example loss trigger: 7.1%, or $2500.
Profit Target: None. The expectation is 5% to 15% return on planned capital during a winning month.
Exit Loss Trigger: 7.1% of planned capital or $2,500 for this example.
Trade Entry: 30 days to expiration or trader may also choose the variable entry option. With the variable entry option, the entry date and expiration cycle will vary based on IV skew and exit date of previous trade.
Trade Duration: 30 days
Trade Adjustments: If the asset price drops below 2220 at checkpoint time, we will exit the position.
Overlapping Trades: No
Historical Win Rate: 80%
Returns of this trade: This V32 trade earned approximately 5.7% of planned capital in 30 days!
Trading Strategy Notes: The V32 is a positive Delta strategy. If the trade goes negative Delta, we will make an upside adjustment to make it positive Delta. We are going to do that by rolling in the upper long strikes. To keep our capital under control, we will roll up the lower strikes.
Why do we love this trading strategy? The strategy does not overlap, meaning there is only one position to manage at a time which makes the position extremely simple to manage.
Get each episode as soon as it’s published with bonus content!
The V32 is a simple options trading strategy that is easy to manage and can be traded with as little as $3,500 per trade. It is a shorter-term broken wing butterfly style strategy designed to be traded on the Russell 2000 (RUT) index.
This rule-based strategy has a minimum capital requirement is $3,500 and takes about 15 minutes a day to manage. Click here to learn more!
Join us each week as we track this trade as well as 11 other powerful strategies each week!! Become a GO or a PRO member to follow this trading strategy on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is for Trading Success Blueprint traders in Stage 3 and above to focus on.
See other exciting examples of the V32 options trading strategy in action! Watch these The Winning Trade episodes:
Returns of this trade: This V32 trade earned approximately $2,270 profit or 6.5% of planned capital.*
Returns of this trade: This V32 trade earned approximately 22.5% of planned capital in only 30 days!*
Returns of this trade: This V32 trade earned approximately 17% gain in 29 days despite crazy market volatility!*
Returns of this trade: This trade earned about $1,830 profit using about $27,000 in capital. Calculating with the full $35,000 planned capital that results in about a 5.2% profit in 28-days.*
Returns of this trade: This trade earned about $1,800 profit using planned capital in this trade of $35,000 that results in about a 5.1% profit in 30-days.*
*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.
Leave a Reply
You must be logged in to post a comment.