Case Studies

Iron Butterflies

XOP Iron Butterfly 

-$125 Loss  |  With $155 Capital 

This is what tends to happen when you sell iron butterflies in times of low implied volatility. This case study is a great example of why selecting the RIGHT strategy for a given volatility environment is so important!

TLT Iron Butterfly 

+$97 Profit  |  With $155 Capital

Although iron butterflies can still work out favorably if you sell them in low volatility environments, watch this case study to find out what I would do differently in this trade and why.

TLT Iron Butterfly 

+$58 Profit  |  With $170 Capital

In this case study, my iron butterfly was in bad shape very early on in the trade, but after rolling the trade out for a credit, I was able to finally get out at a small profit. Proof that "it ain't over til it's over"!