My turn to share – I am learning to trade another type of butterfly called fly on points. On the day before Jobs data comes out – Nov 4 which will be Nov 3, I am going to put on this fly on SPX –
1. buy 1 OTM call at 25 delta
2. sell 3 further OTM calls at 15-20 delta which if 10 points above #1
3. buy 2 even further OTM calls – 20 points above #2 or approx 7-10 delta
You should get a credit and the goal is too keep 100% of credit received. If you lose 2X credit, get out. You much check on trade at least once per day. You must get out of trade by last week of month expiration day. Here’s an example.
http://screencast.com/t/bNufiAUETs