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  1. 1. Trading Broken Wing Butterflieswhen the VIX is in the Basement Presented by Greg A. Loehr
  2. 2. Disclaimer
  3. 3. Trades Disclaimer Hypothetical Trades DisclaimerPlease note: Hypothetical computer simulated performance resultsare believed to be accurately presented. However, they are notguaranteed as to accuracy or completeness and are subject to changewithout any notice. Hypothetical or simulated performance resultshave certain inherent limitations. Unlike an actual performancerecord, simulated results do not represent actual trading. Since, also,the trades have not actually been executed; the results may havebeen under or over compensated for the impact, if any, of certainmarket factors such as liquidity, slippage and commissions.Simulated trading programs in general are also subject to the factthat they are designed with the benefit of hindsight. Norepresentation is being made that any portfolio will, or is likely toachieve profits or losses similar to those shown. All investments andtrades carry risks. OptionsBuzz.com
  4. 4. Access to this webinar is for educational and informational purposes only. Consult alicensed broker or investment advisor before placing any trade. All securities andorders are tracked and monitored in virtual trading accounts. Virtual accountprices and returns may differ from actual trading results. Commission costs areexcluded.Neither Loehr Consulting, LLC, doing business as OptionsBuzz.com nor any of theirrespective officers, personnel, representatives, agents or independent contractorsare in such capacities licensed financial advisors, registered investment advisors orregistered broker-dealers. Nothing contained in this webinar, website orpromotional material constitutes a promotion, recommendation, solicitation or offerof any particular investment, security or transaction.Loehr Consulting, LLC provides educational services that are meant to teach you therisks and rewards of trading stocks and options, and we are not a service that tellsyou what to trade. We are not implying or guaranteeing any profit. As always, donot trade with money that you cant afford to lose. Please visit www.cboe.com toreceive a copy of “Characteristics and Risks of Standardized Options.” Read it. OptionsBuzz.com
  5. 5. BWB’s in Low Volatility Markets Low VIX means a few problems: 1. Lower credit to open trade 2. No credit to open trade 3. Narrower butterflies 4. Closer to ATM OptionsBuzz.com
  6. 6. • Former CBOE Market Maker 1993-2002 • Trained by Susquehanna International Group • Co-founder Third Millennium Trading, LLC • Traded billions of dollars worth of stock and options • More than 20 years combined experience inGreg Loehr options and options education worldwide OptionsBuzz.com
  7. 7. Are you reading the SMB Blog? OptionsBuzz.com
  8. 8. Are you reading the SMB Blog?Hypothetical HypotheticalTrade profit Portfolio of 112% profit of 38% OptionsBuzz.com
  9. 9. VIX January 14 OptionsBuzz.com
  10. 10. Trading BWB’s with VIX below 15 Solutions:1. Lower credit2. No credit to open trade- go further out in time- go closer to ATM??- narrower strike selection- sell OTM call spread to ‘finance’ OptionsBuzz.com
  11. 11. Trading BWB’s with VIX below 15 Solutions:3. Narrower butterflies- go further out in time- go closer to ATM?? OptionsBuzz.com
  12. 12. Trading BWB’s with VIX below 15 Solutions:4. Closer to ATM- go further out in time- don’t trade it OptionsBuzz.com
  13. 13. VIX January 25 OptionsBuzz.com
  14. 14. VIX Yesterday OptionsBuzz.com
  15. 15. Thank You! OptionsBuzz.com