 First off, I'd like to say thanks for having me here today and again, apologies for the technical difficulties here, but we'll get through it. So I'm going to go here today and talk about my big option strategies, which comes down to the butterfly and the long condors. So sound is low. Okay, I'm trying to talk as loud as I can. I'll try to keep it as loud as I can here. Okay, so we're going to talk about butterflies and long condors. And now can you hear me better now? Very faint. Now, can you hear me better now? Mic test, mic test, mic test. Oh, okay, good. So I put you on a speakerphone so it seems to be working. All right, so let's get going. So, you know, the following webinar presentation here is just pretty educational, any stocks, options, futures, ETFs mentioned does not constitute advice and not considerate as a recommendation. So when I was, you know, looking at different option trading strategies and strategies in general, to me, what really comes up is, and really turned my trade around, is knowing how to use and take advantage of time decay and volatility collapse. And so there are a number of different option strategies that really take advantage of these two main pricing components. Now, you know, so when I was thinking about the go-to type strategies, more than anything else, I was always come back to the butterfly, the long condor option spread. So they have a huge advantage over other strategies because of their unique trading time frames and their unique structure of this particular, these two types of strategies. And they only require a very small amount of your hard-earned capital. So that's the other thing that I really like about these option strategies that the capital at risk is very, very low. Now, when you look at using butterflies and long condors, they're very, very dynamic and can be traded for a variety of different reasons with different goals in mind. So in other words, you can learn how to trade butterflies and long condors, and you're going to be covered for both your offense and defense. So goals and protection. So when I say that defense is almost as important as offense and trading, you know, to protect and manage your risk. Now, these types of strategies, they can work no matter what. They can work in an upmarket, down sideways market. They can really help provide you income from stocks that are going nowhere. They will help eliminate the stress of having to be perfect on a stock's direction or overall market movement. Helps to eliminate time decay expense that we all are going to experience when we're long options, that decaying long options. Also, it really helps to take the unsettling guesswork out of your trading. And these types of strategies can be structured for very low cost, okay? So putting up low capital at risk, and you'll see that in a little bit, I'll show you, they can be structured for a 10 or one higher reward to risk type of positive ratios. So they're a really ideal strategy for a lot of different kind of market conditions. Now, the butterflies and the long condors, they're very flexible as well. As you'll see ahead, I want to show you some examples. And once you learn the fundamental setups, you're going to be then able to adapt these option strategies for both your goals and your market insights. So you can structure these as kind of just a Delta neutral type trade strategy where you don't really need the market to go anywhere. But to me, the real beauty is that they can also be used for directional trading. And really, you know, trading does come down to primarily direction. So what these strategies can do, they can offer you either bullish or bearish type exposure to the market, you know, when you feel pretty good about a certain market direction. But if you're wrong, this type of butterfly and long condors, they can really help you to manage your trading risk, but at the same time retaining large potential returns. And that's always a win-win solution, you know, for your trading. Now, let's be real though, you know, when you're using these types of strategies, they're going to be offering you not unlimited profit potential, but they're usually going to cost you a lot less than if you're just buying outright options such as calls or puts. And they're going to give you a really amazing risk reward trade setup. So this means that the butterflies and long condors can significantly increase the probability of your winning trades while also at the same time reducing your risk. And that's what it's really all about. So with my trading, my setups that I offer clients and members, I'm always looking to reduce risk and keep risk as low as possible. And these two strategies are ideal for that. Now, the other great thing about these two strategies are that when you mess up and you're going to mess up in trading, unfortunately, they can be used as a fast, low-cost way to cover your, you know what, when your position moves against you. So by constructing either a butterfly or a long condor around a strike that is under pressure from another core trade that you might have on such as if you have a credit spread or debit spread and it's starting to go against you, this becomes a great way to immediately neutralize and control your risk, which then allows you a lot of times for me anyway to control and better control and reduce my trading stress. Now, here's the ideal situation. It's the best strategy I've found for hedging. So when you keep the original, your original position open by just implementing either a butterfly or long condor hedge against that position. So what this strategy does, it takes advantage of that pricing component of options, time decay. So while you're waiting out maybe the market to stabilize and go back in the same direction as your original trade, that time decay component is working in your favor. And a lot of times, you know, all you need is a little bit more time for your trade to stabilize and then move back and then you just take off your hedge, stick with your original trade. And the beauty of it is that the time decay component, a lot of times will actually, you know, give you additional profit, which you can then use to adjust down your original trade costs. And it works quite well. Now, here's typically what a con, you know, a butterfly and a long condor will look like, you'll have basically a debit spread here. You can see my pointer. So this is, you know, a typical call debit spread. So you might be long a call here, and then you're short a call right there. All right. So in this particular slide example, your risk is $300 right here. So, you know, still a pretty nice fine risk trade, but you never want to lose your max at risk. So one way to hedge this quickly is to do this. You just sell a credit spread against it, sharing the same shortstrike as your call, in that example, call debit spread. And in this example, you can see you're bringing in $200 credit. So you've matched those two together and boom, you just created what we call a balanced butterfly. And you've reduced your risk from the $300 on the call original debit spread to $100, but you still had this, what we call this profits on this tent. And if at expiration, you were to close up the top of the tent, your, your potential profit on your maximum at risk is fantastic. So it gives you a really good zone of profit and it is a great way to neutralize and minimize risk quickly, which is what I like about it. Now the long condor is very similar to the butterfly. The difference is here is that you're going to not have the same short strike where my, my pointer is right here as which would be with the butterfly, but you're going to spread it out. So you're going to move your short strikes out one or two or three strikes. And then you've got this wider zone or wider window for potential profit, but it's the same concept. So you'd be long here, for example, a call debit spread, and then short against it a bear call credit spread, or it could be a using put. So you could be long a put debit spread and then short a bull put credit spread. So this is a great way to get real low risk trade setups, but also a great way to hedge. So the core concept, what makes these type strategies work is, again, it comes down to the option pricing components, which the main one comes down to time decay, all right, or data. So by understanding the concept of time and data and pricing and the effects that they have on the price of an option, it really lets you understand how to use these types of options strategies to your benefit. So let's take a look at these core concepts. Now, when we look at options, data is what tells us how much an option price will go down over time. And that's the rate of time decay of your stock or your securities option. And time decay is, you know, because that extrinsic value, that is the time value portion of an option will go down as expiration draws near. So it's a decaying asset, and it goes to zero, you know, at expiration. Now, when we look at using this to our favor, it's under, it's good to understand the characteristics of the option data. So you're going to either have a positive characteristic or negative. So when you look at long stock options, such as if you're long a call or if you're long a put, they're going to have a negative data value. And that's going to indicate that they're going to actually lose value each and every day as expiration draws near. So if the market or your price of your securities going sideways and not going up or down, you know, direction that you need, it's going to lose value each and every day. So that's a negative data characteristic. On the other side of that, those, if you're short those options, such as short a call, short a put, then those are going to have positive data decay. And that's going to actually help your position each and every day, even if the market goes sideways. And so that's what we were taking advantage of, you know, by using a condor or a butterfly. So here are the two constructions of these. So here's the on the left is your butterfly. And then on the right is the call. This could be a condor using calls or puts. But it's a great way to get a low risk trade. You can establish this as a spread to start out with or you can leg into this creating a the structure for hedging then to reduce risk. So for example, here, the famous company XYZ is trading at $45 and you're looking at this to move directionally to the downside. So we're targeting say $43 in this example. So here's what you would do is if you wanted to construct a butterfly for very low risk trade for a downside target to $43. So in this example, you'd buy one contract of the April 42 call and that costs you $2.38. So that'd be $238 for one contract. And then you're going to sell to open one contract of the $43 call, get $1.67. And then you're going to sell another $43 call, bring in another $1.67 and then buy the $44 call above it for $106. So you're totally capped, your trade, your risk is capped. And you've just constructed a butterfly. So the body is right here where you're short those two strikes on the $43. So that's called the body of the butterfly. And then your wings are the long call here at $42 and the long $44 call. So those are your wings. That's how it gets us name. So if you look at this construction here, the net debit would be your $42 call at $2.38. And then the $44 call at $1.06. All right. So then less your two calls that you sold at $43, the $43 calls and you received a $1.67 times 100. So at risk right on this option example is $10. So that's your maximum exposure on the trade up or down. Now your profit will be taking that middle strike, the $43 call in this example, less your lower strike $42. So it's a dollar-wide spread. So you can see here $43 minus $42 equals $10. And minus your cost of your spread right here, $0.10 times equals $90 times 100 to convert it to an option spread. So your potential theoretical profit on this example is $90 and your risk is only $10. So huge potential there on the trade, very low risk. And if this was to pin exactly at $43 at expiration, you would keep that $90 and that would be a 90, 900% return. So 901 positive risk ratio. And that's the beauty of it. You can do these wide, you can narrow, you know, do narrow spreads and really control your risk, but to give yourself some potential for some huge return on very low capital, but at risk. So let's take a look at the various different types of butterflies. And then I'll go through some examples to show you how they work. Now, in my opinion, also one major goal for every trader is that you want to select trades that are based on what's going to provide you the most positive and consistent returns with low defined risk and not always the greatest return. And one of the best ways to achieve this is by being aware of the different option strategies that are out there and available to you, then understanding how they work and then selecting the one that's going to be best suited for, you know, your trading, you know, profile in the market you're trading in. So let's take a look at a few of the different types of butterflies. Now, this is kind of what I call the family of the butterfly, the butterfly family. You've got a number of different variations to the butterfly spread. So you've got a long, you can use long calls or butterfly spread. You can do what we call broken wing or skip strike butterfly using calls and puts. You can do what I call the ninja butterfly, which is an unbalanced ratio butterfly. You can do really wide wing butterflies, iron butterflies. And the big thing that I love about butterflies is hedging. Okay. And we'll go through how that works. And then also that long condor is very similar to the butterfly, just separates your short strikes. So these are really great strategies to incorporate for low risk trade setups with high return, but also the biggest advantage that they offer is defending your trades. So let's take a look at a few examples here. You'll see how they work, can really benefit your trading. Now, here's just your balanced butterfly here. And we're going to look at a balanced butterfly spread on SPY, the ETF. And these are great for ETFs. They're great for index funds or anything. So here in this example, it's a directional trade setup. And we're looking at SPY here to, it was trading at 267, right about in here where my pointer is. And we were looking for a move up to this Fibonacci level here, the 618 retracement level right there, about 273. So we were worried at that point in time that the market could, you know, it looked like potentially to move up, but it could just kind of roll back over. So we wanted a real low risk trade, again, targeting this area here, that 618 retracement at 273, 274. So here was a butterfly spread that was set up to take advantage of the potential for a bigger reward, but on low risk. So in this trade example, SPY was trading at 273, and excuse me, 267, and we were trading 273. So this was buying the 272 call, right where my pointer is, selling the 273 call. So if you look at that, that'd be a call debit spread, and then selling the 273 call again, and buying the 274. So there's your bear call credit spread. So now you've got a butterfly. Your wings are at 272 and 274, and the body's 273. So here's the construction was done for here, $10 for 10 cents. You look down here. So your debit is your at risk, 10 cents. It's a dollar-wide spread. You can see 272, 273, 74. So the spread between each strike is a dollar. So that would be $100 less your cost of your spread. So your max theoretical profit then would be $90, or that would be a 900% return on your at risk. Now this spread actually went out at expiration with a profit of 70 per spread, which is a fantastic return on your capital of $10. So that's a 700% return. So here's what the, this is what the risk profile of it, and you see inside that tent, you can see where the arrow is. This is where it was trading going into the close right there at 273. So almost nailed it perfectly on direction. Now, based on that, the cost was 10 cents down here. You can see my arrow, and it went out going out at 80 cents debit. So that went from a 10 cent debit to 80. So there's your profit of 70, and that your risk is just $10. So, you know, four contracts was over $280 on that very, very low risk trade setup. Now, here's another butterfly, but this is going to make it, we can control the amount of potential profit by the width of the spread. So this is what, but I call it kind of a wide wing butterfly. And again, this is on SPY, the ETF. So in this one, again, it's a target trade. We were looking for, you know, we were looking for it to move up to 275, right in here where my pointer is right there. And that was a major moving average area. And so we were looking to do this with the butterfly as well into that, that's a 200 day moving average. So the kind of the trade setup was that, okay, we're going to target that to go out at expiration. That's a great target, because that's such a huge resistance area. So for this spread, we did a butterfly, and this one is $5 wise, you can see 270, 275, 280. So here's your body too short at the 270, then you're on the 270 and 80. All right, so this was done for a risk maximum debit cost of $1, $6 or $106. All right, so you can see down here $106 from my pointer is and $5 wide spread. So the difference would be, you know, your max spread width is 500 minus your at risk. So theoretically, if this went out exactly at 275 at expiration, you make $394. And that would be a 371% return or 3.7 to one possible risk ratio. Now, you know, I'm never looking to make make that perfect, you know, maximum going out, but if just think about it, if you can make 30, 40, 50% of that, you're still doing really great. And so this went out, you know, going into expiration with a $209 per spread profit, and that was 197% return on your capital risk of 106. So let's take a look at the risk profile. We can see it right here. So it's going out right there, right there at 276.60. And so at that, so that's not perfectly in the middle of it, 10, but it's still, you can see how wide that butterfly is. So it gives you a really good profit zone. So the going out there was it went from $1.6 debit to $315. So there's your $209 per spread. That's the wide wing butterfly. But again, your risk is very, very low on these. So they're a great risk-reward type of setup. Now the next one that I'll show you is a really cool butterfly. And this is what we call the unbalanced or ratio butterfly. And again, this will be on the examples on QQQ, the ETF. And what the unbalanced butterfly is, it's just a variation of a rep or balanced butterfly. But what it does is it adds an additional short vertical credit spread to shape the direction of the trade. So what you end up with is two in the money credit spreads protected by a slightly narrower, closer to the money debit spread. So it creates a really low defined risk directional strategy with a very, very great positive risk reward ratio and also takes advantage of time decay and also volatility collapse. So this is an example here on QQQ. Now we're looking for a push up. So we're adding that additional credit spread. So we're going to use puts. So if you, how do you go long options, you can either buy calls or sell puts. So by adding an additional bull put credit spread, this shapes this directionally to the upside. So in this example, QQQ was trading at right here about $160 right in here where my pointer is. And again, we were looking for target up here to this Fibonacci level right here about $166.65, $165. And there's also a lot of unusual option to activity here, which gave it a good target to trade to. So instead of doing a balanced butterfly, we did this ratio butterfly because if you did a balanced butterfly here and it went straight up, you could still lose. But the ratio butterfly you would actually make money. So I'll show you how this works. So here's an upside ratio put butterfly. So we're using puts for that upside direction. QQQ was trading at $160. We were targeting $165. So the construction would be then buying a $166 put on the $165. So that's a long demonstrate. So that's kind of the bearish component. And then the other part is selling two $165 puts and buy one two $164. So here's your bull put credit spread. So bullish. So I'm just breaking this down so you can see the construction. But when you do this together, you can do this as one spread. This creates a ratio butterfly. So you can see here's one by two. So you've got more contracts of the short bull put credit spread. So that shapes your direction up. So when you put that together, it creates a really unique strategy, the ratio butterfly. And you can really control your risk but have multiple points for profit. So here again, it was trade at $160. We were looking for that target to $165. So constructed down here, you can see my pointer. We did the $166 put, bought that, sold the $165 and then sold two more, $165, $164 bull put credit spread. So you can see the ratio here, one by three by two. So if you did contracts, you'd be 10 long, 30 short, 20 long. So this was done for a 50 cent credit. So you're bringing $57 credit and if this was to blast right through $166, you still keep the credit of $57. Now your risk is the difference. It's a dollar-wide spread. So a very, very controlled risk. Your maximum then lost would be $43. If it went out exactly at $165, you'd make $157. So it's got great profit potential and the risk is super low. So this particular spread went out making $136 per spread going into expiration and that on your risk of $43 is a 316% return. Now if it blew straight above $166, you'd still keep your credit of $57 and that still would be at over 100% return. So in certain markets, these are a great strategy and so here's what it looks like when you look at the risk profile. So it's going out almost right there at our target and so that went from a 57 cent credit down below where my pointer is to 79 cent debit. So it totally flipped and so there's your $136 per spread and on your risk of $43, that's a 316% return. So it takes advantage of time decay, that volatility collapse and high return on capital and that little bitty black area is what's left of time decay and volatility going into expiration. So that's the key to this spread is that those both go to zero and that's what we're taking advantage of. Now here's an example, one example of a long condor and this is a great way to also do really low risk trades or to hedge. So I'm going to show you one that was converted to a condor. So this was originally set up as a debit spread so short trade again using the S&P SPY and then it was converted to a long put condor and converted into a free trade. So this is the other cool thing about this strategy. So when we start out with trade one here is a short trade SPY was trading right here at about $275 and we were looking for a downside move and we were targeting the $618 for trades and again I like to use Fibonacci for targets and so we're targeting $270 so the trade setup was to do a put debit spread targeting $270 but with the potential to go through it and maybe we could convert this to I always like to think a couple steps ahead. So we're thinking okay if it drops down here maybe we could convert it to a butterfly or a condor and then if it pops back up just be a great way to play it. So here's what happened trade one was just buying a 273 put selling the 270 all right so put debit spread three dollar wide $65 was the cost of very low risk trade to begin with and so the max potential profit three dollar wide spread less 65 would be $235 per spread that's a great return there alone of over 300 percent. Now it dropped down on the 29th and so it took some profit and took it off at 98 cents a partial profit so that's a return of 150 percent when it was trading at 271 but instead of taking the whole trade off converted part of it to a put condor so here's how that worked so when it dropped down to that 271 270 area sold 268 put bought the 265 so bull put credit spread so right here 268 265 and brought in $65 credit all right so total credit received 65 and then that totally offset the 65 at risk from the debit spread and now you've got this trade three you've converted and made what we call a a put condor so here you're long the 273 put short to 270 and then when it dropped down sold the 268 put bought the 265 so now look at that wide profit zone okay huge window but the risk on this trade now it's gone to zero because you covered that debit cost originally so now you've got pretty much a free trade and this went out trading right here at 271 33 and at that point in time into expiration that was under $64 per spread on zero risk so if it'd gone out between the short strikes right in here the max profit would have been 300 but it's a great strategy and you still so many different things with it so you know that's what you ended up with a zero risk for potential profit of up to $300 so trade one on this you know the debit put debit spread made 98 but by converting the other part that that increased your profit to 164 and zero risk so so many different things you can do once you understand the fundamentals of these vertical option spreads so if you'd like to learn more I've got a really great offer here for everybody today and this is a condor butterfly condor course that I did not too long ago and so it's all recorded it's a five hour plus workshop everything's broken down in 30 minute modules and it's for everybody here today it's just $97 if you use this link here powercycle trading dot com four slash bf c o n one and let me see if I can get that link in there I've had so many problems here but let me go through I'll show you everything you'll get also it's a great bonuses here so let me see the link if I can get that in there for you should be in there yeah so here it's already there if you look on your offer link if you just click on that you can sign up for it's a and it's a $97 and you're going to get all these different bonuses that you'll see here okay so you're going to get the live course this is on my website for $297 we'll do a follow-up Q&A too in about a week or two so you'll get an email link for that you'll get my option trading tutorial that's another nice bonus that you'll get with this you'll get my option strategy manifesto and my power tool guide on on the Greek so you're going to get all this really great valuable stuff for just $97 today and so use that link that I think you're seeing on the offer component here for the webinar jam or you can just type in powercycletrading.com forward slash b f c o n one all small cap now this course covers everything you'll need to know about butterflies so it starts out just doing a really good review of the Greeks that are needed how theta decay impacts the butterfly how volatility impacts the butterfly and long condor and you know the effects of those those have on pricing so if you're even a beginner trader I always like to start out any of these courses with a good kind of overview summary of the Greeks and option pricing so it starts out with that in part one and then part two goes through all these different butterflies every one of them in detail how they're used when to use them and why so you'll learn you know the core basics that most people don't understand about butterflies and long condors and also have the strangle in this in this particular course which is another pretty unique strategy so you're going to learn the butterfly and long condor spread foundation which is you know around vertical option spreads and then how why and when to use a long call or put butterfly that broken wing butterfly ratio butterfly a broken wing ratio butterfly wide wing butterfly iron butterfly long condor so you'll go through in this course and learn all these different butterflies the whole family and so they're in great details of five plus hour course and then you'll learn what are the optimal times to put them on so you you know you put these on you know 10 days out 15 etc and then how you can set these up to make you know 10 to 1 or higher return on your capital as low as maybe $10 you know you saw that one example and then how do you profit from that volatility collapse and theta decay using these two strategies the best way to utilize long condor which is this is probably one of my favorite strategies in general because there's so many things you can do just from an outright low risk trade to hedging and then also have a chapter in this course on option strangle strategy so that's a really selective type of strategy for kind of the non directional trade when you think something major is going to happen which will explode the market up or down so it's a really great way to take advantage of a certain event that might happen and so this part part of the course goes in how wide when to use this triangle and then part three is another really great thing with the butterfly strategy is this can give you 12 different times a year you can use it monthly for monthly option expiration so on a monthly option expiration you've got a huge amount of institutional buying and selling and so the markets are trying to pin at a certain strike price at expiration and this is a great strategy to take advantage of what we call pinning and so you can do these types of setups for very low risk but they give you a very very big return if you get the pin right so we'll go through in the course and I'll show you how to target you know these strikes for option expiration then using the butterfly or long condor to trade against those potential strikes for expiration and so a lot of times what we'll do is we'll use unusual option activity in Fibonacci so it will go through how that's done in this course as well and then you'll get a step-by-step checklist of when to put it on the butterfly condor take off execution rich management and the biggest part the biggest takeaway is to learn how to use these for hedging so how to use the butterfly and the long condor to hedge any of your core positions and then how to also defend any vertical spread so you could have a vertical credit spread that needs defense or vertical debit spread and so this shows you how to mix and match these vertical spreads to defend the trade and reduce risk and then you'll get a resource library here with you know what happens if you get exercise etc and you'll get also a nice library of these types of trades so it's a very extensive course and it'll it'll really give you a new element to your trading and the biggest takeaway will be for for hedging is the best way that you'll find to hedge your positions going against you so you know little feedback said larry you've been awesome with great content valuable information precisely to the point great teacher and better best butterfly course too so appreciate that and so bonus one you'll get a live follow-up q&a which will also be recorded this will be probably about two weeks you'll get a link for that you'll get my option trading tutorial so 60 page option guide with videos on the greeks you'll get my 15 option strategy guide so some really great option strategies risk profile all laid out for you what they are you print this out put on your desktop and then bonus for my greeks so you'll get this as a desktop you can print it out so what is delta theta gamma you know so you'll have that you can refer back to it if you're like stuck on oh i forgot what that is you know so it'll be a nice print out for you and then one last bonus surprise if you've never been a member to our trading club of our trading club you'll get a 30 day free trial and then if you continue on it's 97 dollars a month after that so a lot of great stuff here for everybody that tend to appreciate everybody taking some time to be here today and with our trading club we have a trading room open each and every day first hour of the day i'm in last hour we do a do daily market video updates every night on what the markets are doing what trade setups we're looking at we've got a member's trading video archive of all these weekly q&a every week and these are all recorded educational involved and then anything on our site as if you're a member you get 60% off on everything on our site all our trading software and all of our courses so a super great offer here hopefully everybody will take advantage of it and learn how to use these specific strategies for profits but also the biggest takeaway you'll find is how to use them for your hedging and you'll you'll be really really happy for that and so that's pretty much it and again sorry for the the problems here earlier but hopefully everybody was able to kind of fall along here and get the general overview of these two strategies and how beneficial they can really be Larry so um let me just take over from here and uh once again apologize for that bit late delay for Larry and uh once again you got his little promo there for 97 dollars I told you everybody here uh at Cybertrain University when we're doing hosting these events we got some great presenters they got some great deals you guys always want to learn about butterflies I mean listen Larry's the guy that that basically teaches better than anyone else so go on take advantage of it what do you have to lose 97 dollars I mean look at all those bonuses that he's throwing in there with between five hours of recordings the options trading tutorial the green power tool guide all that good stuff from 788 only down 97 so go out and just try it out you got the link up there so I'm going to give you guys about five minutes and then I'm going to come on and take over from there I'm going to talk about the smart money exposed why you need level three to beat the best traders on Wall Street so um so just stick around don't go anywhere in the meantime give you some time to register for it uh for Larry's promotion and uh we'll be back in less than two minutes don't go anywhere thanks Larry for coming here and uh see you next time