In this session, we discussed the benefits and drawbacks of the Road Trip trade in detail. We also discussed the benefits of the long-term M3 (M3 LT) and how much easier it is to trade in the current volatile markets by going further from expiration. (86 minutes)
Session Index |
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| Time | Subject |
| 3:45 | Explanation of Broken Wing Butterfly (BWB) using SPX as underlying. |
| 4:55 | This is a basic BWB setup using SPX as underlying. OptionVue software used to present example trade. |
| 5:50 | This is an example of an M3LT trade using RUT as underlying. |
| 10:00 | This is what to watch out for when entering a BWB in a low volatility environment. |
| 12:30 | Adjusting the BWB to the upside in low volatility environment and potential pitfalls. |
| 23:53 | Dave Thomas comments on his experiences with back testing and fully understanding the nuances of the BWB. |
| 28:30 | BWB downside adjustment guidelines and comments on BWB when the market moves down. |
| 33:30 | John Locke and Dave Thomas give final observations on BWB and important issues to be aware of. |
| 42:02 | Benefits of Trading the M3LT vs. shorter term trades. |
| 43:16 | Full example of how to set up an M3LT and how the example trade was adjusted to the upside. |
| 52:30 | Example M3LT trade setup. Adjusting down and then adjusting up in a whip-saw market. |
| 55:09 | Example M3LT trade setup. Exited trade in lieu of making a major adjustment under 50 days. |
| 56:30 | Example M3LT trade setup. Adjusting in a hard down market. |
| 1:00:08 | John Locke gives his final observations on M3LT trade and the benefits of trading a long term trade. |
| 1:07:33 | M3U LT setup and example trade on RUT in Dec 2015 expiration cycle. |
| 1:18:56 | Example M3U LT trade setup. Adjusted when the market moved up and then took off trade when market pulled back. |
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Premium PLUS members$49.00*
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