***There is additional information available to our Premium and Premium PLUS members in the Locke Options Community on this topic on the Resources page (you must be logged in and at least a Premium member to access link).***
The reality is that there are so many variations we teach that it would be hard to list them all but below are the primary designations.
M3 Configurations are in the following format (Asset / Entry Variation / Upside Adjustment Strategy / Downside Adjustment Strategy)
For example:
A “classic” M3 as shown in the M3 Program is a RUT / M3C / ROR / RB a balanced butterfly with a call using a risk off using (verticals to raise expiration line, verticals can be in any location) then roll up adjustment strategy and a rolling back downside strategy
An “NDX / M3U BWB LT/ GRTFD / PGC” would be broken wing butterfly in NDX without a call that is entered further away than 60 DTE with a gradual transition into a condor while maintaining minimal upside risk as an up adjustment strategy (IE adding Broken wing butterflies above the money) while buying puts, then utilizing techniques to stabilize Greeks in T+0 line to the downside while correcting the T+0 line to the upside in the event of a reversal
Primary Entry Configurations
Classic M3C (butterfly call)
M3U BWC (broken wing condor) – Details found in the M3 course
M3U BWB (broken wing butterfly) – Details found in SMB 2016 M3 Update
M3Ub (Unbalanced)
M3T variations (Diagonals and Calendars)
M3CE (capital efficient)
M3CEu (ultra capital efficient)
M3LT (Long term or far from expiration > 60 DTE +/-)
M3ST(Short term <30 DTE)
M3E (weekly call)
M3W (<15 DTE)
Primary upside adjustment strategies
RO – risk off only
ROR – Risk Off then Roll (classic M3)
GRT – Gradual ROCK Transition
GRTFD – Gradual ROCK Transition flat Delta
GCT -Gradual Condor Transition
SP – Scale in via price
ST – Scale in via time
Primary downside adjustment strategies
RB – Roll Back (Classic M3)
PW – Weekly Put
P – Same Month Put
PB – Back month put
PC – Put with upside correction
SF – sell futures/stock
V – Vertical
VC – Vertical with upside correction
RS – Reverse scale in
PGC – put with Greeks corrections and upside corrections
Asset designations
RUT
SPX
NDX
