Iron Butterfly (Ironfly): Theta Gang Strategy #7 I r/wallstreetbets

#wallstreetbets #robinhood #stocks #options #wsb #tastytrade

Iron butterflies, also called ironflies, are a great way to take advantage of IV Crush or Theta Decay when the Short Straddle is outside your personal risk tolerance. Iron butterflies offer a great way for even small accounts to get in on the action by using limited-risk credit spreads.
To set an iron butterfly:
Sell-to-open 1x call at an at-the-money strike
Sell-to-open 1x put at an at-the-money strike
Buy-to-open 1x call at a higher strike
Buy-to-open 1x put at a lower strike
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[marcustulliuscicero]

It's insane that someone so intelligent would want to be associated with WSB

Once again, great video, Mikey!

[justiny.butitshisnonexiste]

"Guh" Stated by a wise man in the comment section.

[rherradurarandysavage]

I scroll past a lot of my subscribed videos but I never pass this channel up

[redraidersK]

Let's get an update on your stonk challenge

[nrpbrown]

It's taken a quite a few rewatches but Jesus I finally understand Iron Condors and Butterflies. Thank you for these

[informedtradez]

Great Job Mikey!! I made 300% on DIS with a different type of butterfly strategy.

[dxorton]

Been rewatching all the wall street bets. Feels good man

[wendellswet]

That extreme limited risk was a great move in retrospect. Spy was nowhere near that price when his contract should've expired. Dude only lost $4 while others lost thousands.

[MontageHustle]

Instructions unclear; taught my Butterfree Iron Defense, we good?

[Thetechgeek]

Okay, so call me crazy, but this video made the most sense out of the whole series so far. I'm not sure if it's because I'm actually starting to understand options and everything, or if it's because of the in-depth RH demonstration you did. This really was the simplest video to understand.

All this watching isn't going to get me anywhere though, I feel lost a lot because I'm not actually implementing the strategies I'm learning here and elsewhere, I need to actually get trading to understand the mechanics more. But really, that RH demonstration helped me out the most visually, I just hope that once I start trading on there a little bit, I can understand the fundamentals and switch over to WeBull and ToS.

Thank you!!!

[jimmyfelton]

Tripled my account last earnings season using this strategy... sold these just before earnings then close after earnings when volatility drops

[khzdl]

Man love your vids. Keep them up. I started trading options about a month ago and I couldn’t find a guide that i could understand. But your videos explain them so well. Thanks again! - Your new subscriber

[thankutheodore]

Hands down thee best and most concise explanation on YouTube so far . Great job

[Mike_Schmitz_Videos]

Great advice I learned so much from this video I decided to short the entire spy!

[Jab_hutt]

I was lonk time window licking lurker of all kinds of stonks "investing", but never actually went behind the window. I think I finally got it, I mean enough autism, to go and do it. These videos are by far most educational from what I encountered (unless someone counts academia type things, but who needs that in their lives), because they are real life examples with commentary.
So I was just wondering, with all this knowledge and experience, how come you're not in Forbes yet? So it is really THAT hard and it's basically endless slot machine, no matter the effort, at the end of the day?

[seancoakley]

I hope your channel blows up. Great stuff.

[nathalieh]

Your an excellent teacher. Wish you had in person classes.

[porsche]

just to be clear, this is a way to play theta gang w/o having a large amount of capital for collateral?

[Dickyhan]

Hi, I don't really understand exactly how to manage the ironfly. How do we profit from IV crush and theta decay? I get we can buy back the parts of the ironfly that we sold for lower, but wouldn't we then need to sell the parts that we did buy initially for a lower price?


and will robinhood automatically sell the 2 strikes and buy the 2 strikes necessary to close the whole 4 option ironfly when you choose to? or do you have an option to decide not to close the whole thing, just one of the legs for whatever reason? meaning are they all tied together for this strategy? thanks for the reply!

[SunDevilThor]

I just joined Theta Gang by getting approved for level 0 options in my self-directed Schwab 401K account, and then selling covered calls on AMD and SPCE so far, but I have yet to figure out when its best to close out of them besides letting me expire. The UI is bit confusing on the selling side.