Mango Butterfly

[Alvin Leong 0]

Hi All,

Has anyone has any experience with the said Mango butterfly of delta neutral trading developed by Jay Bailey from Dan Sheridan? Would like to hear some views and recommendation.

I am actually looking for some cheap and affordable butterfly course for delta neutral trading that i can trade small for like 5k or 10k account. Any recommendation is welcome

[Rogers 263]

I have traded the Mango in the past with mixed results. The 40/50 mango still has trouble in up-trending markets.  I prefer an M3 or a BWB that has no upside risk or even benefits from upside moves (like a 30/50 BWB).  Of course it is more expensive and has more downside risk.  Pairing one of these with a couple Steady Options short strangles would be a good combination.

 

[Alvin Leong 0]

24 minutes ago, Scott Rogers said:

I have traded the Mango in the past with mixed results. The 40/50 mango still has trouble in up-trending markets.  I prefer an M3 or a BWB that has no upside risk or even benefits from upside moves (like a 30/50 BWB).  Of course it is more expensive and has more downside risk.  Pairing one of these with a couple Steady Options short strangles would be a good combination.

 

Hi Scott, have you traded the All put flat fly from Mark Fenton?

[Rogers 263]

9 minutes ago, Alvin Leong said:

Hi Scott, have you traded the All put flat fly from Mark Fenton?

I have not

[Alvin Leong 0]

On 16/07/2017 at 9:45 PM, Scott Rogers said:

I have traded the Mango in the past with mixed results. The 40/50 mango still has trouble in up-trending markets.  I prefer an M3 or a BWB that has no upside risk or even benefits from upside moves (like a 30/50 BWB).  Of course it is more expensive and has more downside risk.  Pairing one of these with a couple Steady Options short strangles would be a good combination.

 

If for no upside risk, isn't that trading vertical put spread is better? We only lose if market go down alot.

[Rogers 263]

On 7/17/2017 at 0:53 PM, Alvin Leong said:

If for no upside risk, isn't that trading vertical put spread is better? We only lose if market go down alot.

A vertical put spread is an option as well.  John Locke uses these in his BULL trade which I think is a delta 25 short put and a delta 10 long put. I was doing a 50/30 BWB before but the low IV environment made it so this cannot be done at a credit any longer.  There are so many ways to play a positive trending market that you just have to pick what you are comfortable with and have a plan for what to do on that day when the market takes a large hit.   

[kdunaway 13]

@Alvin Leong I started learning butterfly spreads with Gavin McMaster's "Bullshit Free Guide to Butterfly Spreads" (2.99 on Amazon, can pick up for free too). He runs optionstradingiq.com. It is definitely a beginning book, but he lays out a bunch of different variations. His main butterfly trade is a Bearish butterfly, which looks for overbought markets and profits from a slow uptrend and a then a pull back. Thetatrend.com has a lot of info too, it isn't updated anymore as owner got a job trading.