Risk Free Butterfly Option Strategy Adjustment? YEP!

Trading butterflies (and especially broken wing butterflies) give us a lot of flexibility in how we can exit to maximize our potential win rate. Because we trade BWB's much more often than a standard butterfly we will focus this video on adjustments for these strategies.
With a broken wing butterfly we are able to buy back the embedded put/call spread should the position move favorably in one direction and leave a remaining risk-free butterfly for a potential one time big profit. While this is a more advanced type of adjustment it's very easy to follow and I will explain it step-by-step in this tutorial.
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[@007goldtrim]

this was one of your better videos. very good

[@sanbetski]

hi Kirk. great video, i have yet to apply this strategy to my trading. i have a question regarding butterflies though, is it possible to convert a short bear call credit spread that went ITM to a short butterfly to migitate risk/loss? thanks for everything!

[@OptionAlpha]

Yep for sure - and a common adjustment we do.