Setting Up A Broken-Wing Butterfly

<p>The traditional <a href="https://ontt.tv/2ubiEdV">butterfly spread</a> is a great strategy to take advantage of high implied volatility with a neutral bias. But a <a href="https://ontt.tv/w2kqC">broken-wing butterfly</a> could be an even better strategy, as it allows us to move the strategy from a net debit to a net credit while introducing a directional bias into the market. Of course, there is a gotcha with breaking the wing, and this comes in the form of added risk to the strategy.</p> <p>Be sure to connect with<a href="https://twitter.com/jschultzf3" target="_blank"> Dr. Jim on Twitter</a>!</p>