Removing Risk From Iron Fly Trades Using This Automation In Option Alpha!

This bot automation can hopefully help reduce the number of losing trades on iron fly spreads. After the iron fly trade moves into profit, the stop loss is automatically updated to break even.

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Here's a link to the bot described in this video:

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LINKS

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WHAT IS THE IRON FLY STRATEGY?
The Iron Fly Options Trading Strategy is an options selling strategy that can generate consistent, weekly income. It does so by opening a 10-strike wide iron fly (iron butterfly) spread on SPY every trading day for a large credit of approximately $600. It benefits from theta, or time decay, and the trader exit when a specific profit target is reached. To learn more about this options selling strategy and how I automate the passive income generator, check out the videos below.

OPTIONS BASICS!

NEW TO THE IRON FLY STRATEGY?

FREE TRADE LOG FOR OPTIONS TRADERS
* Click on "File" then "Make a copy"

DISCLAIMER
I am not a financial advisor and this is not financial advice. This content is only for educational and entertainment purposes only. Any trades you see here are either past trades I’ve made or an example trade. Please don’t follow any trades you may find in these videos.

#OptionAlpha #ironfly #automatedtrading #optionstrading #options #passiveincome #optionselling #Options #Stocks #StockMarket

[wmbrice]

Thanks so much for all the thought & effort you have put into these models

[Cycling_Todd]

I've impleneted these updates to your bot on my bot in Options Alpha. I love your improvements!

One suggestion to consider would be adding a profit taking level between your 10/10 "breakeven" and your first profit taking trailing stop currently at 20/5. Would you consider putting into the mix your initial 15% as the first level? That gap between the 10% and 20% is a lot of profit to leave on the table in those cases where the profit in the position doesn't get up to 20% and then falls back to where the 10% kicks in to breakeven.

[flsts]

Really enjoy your videos, you explain things so it’s easy to understand. Keep up the great work. With the shrinking trail would that affect the pattern day trading rule?

[tradingtalents]

I'll post my results each week so we'll soon find out it this adjustment helps!

[tamidillon]

I truly love your content and I’m most interested in the SPY 7 dte Iron Flies. I’ll be ready to set up my OptionAlpha bot in ~2 wks (hamstring repair surgery first, dang it). I have an existing account w/TradeStation (no commissions, minimal fees but a $15 assignment fee). I see that TradeStation is one of the brokers that is currently active with OptionAlpha bots. If I used my TradeStation account (vs opening a Tradier account), I think I still have to pay for the OptionAlpha account, correct? Compared to if I open a qualified Tradier acct, I get a free OptionAlpha account? I’m not sure I have it exactly correct.

[flsts]

One more question, you said the shrinking trail would be monitored every 15 minute. Or should it be bot checked every minute since it is a exit option?

[sahangamage]

Great video as always. My concern is how this strategy work with PDT rule. Would it be restricted or you are trading with a cash account?

[MrSkywryter]

I ran the shrinking trailing stop today and got three closes for 8, 19, 23. Before implementing I would get closes at 123 and 78 neighborhood. I'm not saying the early closes are a bad thing but I do think they could potentialy trigger PDT- with a volatile market. That said, the extra protection is a cool thing. I'm going to widen the stop and see if that helps.

[jpcrofoot]

The only negative that I see would be this: If a person had say 3 tranches going on Friday and over the weekend a Covid like news story was announced, those 3 tranches could end up at a loss of the full amount, $500 each. Is that correct? or am I figuring wrong?

[dannyleon]

Wow that is a good improvement for trailing stop and very appreciative for sharing with us. Keep up the good work. I am using Tastytrade trading platform therefore couldn’t enjoy using this automation in Option alpha. Any advise?

[tamidillon]

For this type of change, are you planning to implement this in the Trading Account to test/monitor before making the same changes to your Live trading acct? Or I think you said you were going to implement in Wk 4, directly in Live account? I was hoping that you were going to proceed with trying to tweak this strategy to optimize taking profits AND minimizing losses. I’m cheering you on.