Of course I wouldn't do that to a butterfly! Or would I?
There is an options strategy called a butterfly and it is called that because it sorta looks like a butterfly if you squint real hard. Here's a chart of it:
You have to put on four trades to create the butterfly trade. So your broker will love you. But, to me, the profit potential is not that great so I rarely do butterflies.
Instead, I use a strategy called a broken wing butterfly. Here is what it looks like:
You can lose more than with the regular butterfly but you lock in a profit if the price stays below a certain point.
This is a low risk strategy that can create solid income for you.
And that is what our updated Options Paychecks course is all about. How to make consistent income through paycheck strategies using option.
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