The Winning Trade Episode 101 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.
Click here or in the video to see this great trade unfold!
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VIDEO INDEX
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 X4V22 is one of three primary trading structures within the X4 Training System. It is designed to maximize results on the SPX in somewhat bearish bias, market neutral conditions. This options trading strategy is a bit more active and complex than the other X4 options trading strategies.
Returns of this trade: This trade earned approximately $1,451 on $35,000 planned capital but the actual capital at risk was much less.*
Description of this trade: The X4V22 is a bearish bias, market neutral income strategy designed to be used on the S&P 500.
Minimum Capital Required: $3,500 per trade
Example size: $35,000 planned capital trade
Profit Target: None. In general, I’d expect an average good month to be about 10% of planned capital
Exit Loss Trigger: 7.1% of planned capital or $2,500 for this example
Trade Adjustments: Yes
Overlapping Trades: Yes
I love this trading strategy because: It is amazingly resilient and performs well in volatile markets.
Learn this trade plus two others!
This rule-based strategy has a minimum capital requirement is $3,500 and takes less than 15 minutes a day to manage. Click here to learn more!
It is incredible how the extreme market conditions didn’t stop out this trade and those that follow the X4V22 trade during the Options Trading for Income by the Guidelines webinar got to see it all. Consider joining us each week!
SEE OTHER X4V22 WINNING TRADE EPISODES!
Episode 83 – X4V22 Trading Strategy
Returns of this trade: This trade earned approximately $1,451 on $35,000 planned capital but the actual capital at risk was much less.*
Episode 78 – X4V22 Trading Strategy
Returns of this trade: This trade earned approximately 9.8% gain on planned capital in extreme market conditions!*
Episode 30 – X4V22 Trading Strategy
Returns of this trade: This trade earned about 21% of planned capital in 47 days.*
Episode 16 – X4V22 Trading Strategy
Returns of this trade: This trade earned about $7,951 profit or about 23% of the planned capital.*
Episode 12 – X4V22 Trading Strategy
Returns of this trade: This trade earned about $3,500 profit or about 10% of the planned capital.*
*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.
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