How to Capture Outsized Profits When the Market is Sluggish
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- Опубліковано 27 тра 2024
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Traders often complain that the market is sluggish and doesn't provide for much movement in the summer months when trading volumes shrink due to vacations and holidays. In this video we present a way to actually take advantage of this sluggishness with a simple weekly trade that loves sluggish environments.
#smbcapital #stockmarket #optionstrading
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The profit/ risk charts that I've seen for broken wing butterflies are usually biased up or down, does anyone know why this strategy would be preferable to an iron butterfly/ condor in a "sluggish" market?
Hello, thank you for this video but i have question- I noticed the Put options which were bought at $5.10 per contract was at $0.43 at the closing order window but the calculation showed Long put contract at $4.30 which is not correct. Please clarify am I seeing something different or there was error in video. Thank you.
Afshi, you are correct and that is an error. The income from closing that would have been $86 not $830, and so the profit from the transaction is not $2,470 but rather $1,726. Thank you for picking up on that. The corrected return is 67%, which is obviously still quite attractive :)
@@sethfreudberg4750 - Thank you for replying back, I was trying to understand and do a paper trade to test the strategy therefore I noticed and wanted to make sure if there is something I missing. Really appreciate the reply back. Would be nice to see more videos like that.
Great clip!
Thank you Fallin Knife! Please let me know what other topics you'd like me to discuss.
@@sethfreudberg4750 Yes Sir. Dividend stock investing, using a scanner and level 2 quotes would be grand !