In this session, the benefits of the M3 options trading strategy for longer term (M3LT) are revealed and how much easier it is to trade in volatile markets by going further from expiration. We also discuss the benefits and drawbacks of the Road Trip trade in detail. (86 minutes)
Se | |
| 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 M3 options trading strategy for a longer term using the 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. |
