EPISODE 11; Bearish Butterfly
Returns of this trade: This trade earned about $10,000 profit with a maximum capital in it of about $16,000 or about 60% of actual capital.*
Using the planned capital in this trade of $50,000 that results in about a 20% profit.*
Description of this trade: The Bearish Butterfly is designed to maximize results in very choppy and bearish market conditions on the Russell 2000 or RUT index. It is also one of three primary trading structures that are used in the ROCK trading system.
Minimum Capital Required: $5,000 per trade
Example size: $50,000 planned capital
Profit Target: 30% (or $15,000 for this example) / Reduced at 21 DTE (Days To Expiration) of 10% (or $5,000 for this example)
Exit Loss Trigger: 30% (or $15,000 for this example)
Entered Trade: 56 days to expiration
Trade Duration: 35 days for this example
Trade Adjustments: If the market comes down, roll the position to ATM (At The Money). If the price goes up there are a series of price points where we adjust and add to the strategy.
Overlapping Trades: Yes
Why do I love this trading strategy? Because I can get very high returns in choppy and bearish markets.
WATCH THE EPISODE
LEARN THIS TRADING STRATEGY!
The Bearish Butterfly is a rule-based trading strategy that is designed to maximize results in very choppy and bearish market conditions on the Russell 2000 index. The minimum capital requirement for this strategy is $5,000 with a profit target of 10% to 30% which takes about 30 minutes a day to manage. Click here to learn more!
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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 4 and above to focus on.
SEE OTHER BEARISH BUTTERFLY WINNING TRADE EPISODES!
Returns of this trade: This trade earned about $10,000 profit with a maximum capital in it of about $19,000 or about 50% of actual capital.*