The Unbalanced Butterfly 1 and 2 (UB1 and UB2) trades are the broken wing butterfly trading strategies that were the predecessors to the legendary M3 trading system. Students have been extremely successful with similar variations of these trades which we’ve been teaching since 2007 to one on one clients. I’ve updated the approaches and now is your chance to learn these strategies!
In this course, you will learn two easy to manage, high probability, low-risk broken wing butterfly trades on the SPX. These foundational, rule-based trades require $7k minimum capital.
To get the most out of the UB1 and UB2 course you will at least need to be a proficient beginner with a solid basic level of knowledge of options spreads, which means:
- You know what options are including strike levels, expirations, intrinsic, and extrinsic value
- You have a basic understanding of the Greeks (Delta, Theta, Gamma Vega)
- You have at least some experience live trading options spreads
- You know what an unbalanced or broken wing butterfly is
- You know how to use analytical software such as OptionVue or OptionNetExplorer
- You are familiar with the basic terminology of options spread trading like vertical spreads, condors, wings, T+0 line, expiration line and days till expiration (DTE)
This course includes three classes with over three and a half hours of instruction and indexes for each class on:
Class 1 – UB1 Overview, Rules, and Examples
- Trade rules for the Unbalanced Butterfly 1 (UB1) Trade rules including risk and entry parameters with downside and upside rules.
- Examples of the UB1 trade with backtesting results from analytical software
- How to increase returns with the UB1 trade
Class 2 – UB1 Q&A, Examples, and Improvements
- Put protection for the UB1 trade
- Effect on SPX movement on the trade
- Improving performance and simplifying management of the UB1 trade
- Using OptionNetExplorer for price tracking
- Optimizing the UB1 trade
Class 3 – UB2 Overview, Rules, and Examples
- Review of UB 1 & 2 trade objectives & concepts
- Trade rules for the Unbalanced Butterfly 2 (UB2) Trade rules including risk and entry parameters with downside and upside rules.
- Performance results of the UB 1 & 2 trades
- Many examples of the UB2 trade on OptionNetExplorer