Presented by: Alex Mendoza
, options trader, instructor
Learn perhaps the most powerful option strategy implemented by elite floor traders on the Chicago Board Options Exchange
- the Broken Wing Butterfly, or BWB.
This esoteric technique strategically meshes the benefits of a butterfly with those of a vertical spread, while protecting each to reduce the risk exposure of both.
How many times have you purchased a butterfly spread, only to watch your position expire worthless?
The BWB works around this conundrum of risk versus reward so that most spreads are purchased for a zero debit.
will let you in on the inner workings of the spread: how to place the trade for a zero debit, how the whole trade can equal more than the sum of its pieces, and why this is likely the fastest growing and most sought out option trade today.
A Quick Note About Alex Mendoza: Alex Mendoza is chief options strategist with Random Walk.
In 1995, Alex graduated from Duke University with a B. A. in Economics.
His mathematical aptitude landed him a position at the Federal Reserve Bank, where he served as an assistant economist.
In 1997, he
moved to Chicago where he
underwent a rigorous formal training program with Susquehanna International Group (SIG).
He was a market maker and member of the Chicago Board Options Exchange from 1998 to 2002.
While on the floor, Alex
made markets and managed positions in over 40 equity options classes.
continues to trade as well as teach options strategies.