What to Look for When Rolling Broken-Wing Butterflies

<p>With 21 DTE in the February cycle today, we look to roll as many positions as we can, and one of these positions is our <a href="https://ontt.tv/isYXE">Broken-Wing Butterfly in QQQ</a>. As this strategy sets up very much like a Ratio Spread, we will look to adjust it in a similar fashion. Specifically, we’ll consider both rolling the entire spread out to the next cycle or taking the Long Put Vertical Spread portion off for near max value. In working through this analysis, we are reminded that <a href="https://ontt.tv/2Htx6W0">defined-risk strategies</a> are great because they put a limit on your max loss, but that “gimme” is not without a corresponding “gotcha”.</p> <p><a href="mailto:Dr. James Schultz (@jschultzf3) / Twitter">Be sure to connect with Dr. Jim on Twitter!</a></p>