So here is an example of what I have been working on the last few years. Has taken a while to get the structure and ratios correct. Profits develop slowly but there is a huge range that you can have profits and if you notice no risk to the upside. Also to the downside SPX has to fall another 250 points before I lose any money.

You start with a butterfly, regular or slightly broken wing butterfly. Then I go long a call to the upside so that the positions starts out delta neutral. 30 DTE. Then you let the market move. This one took and adjustment about 2 weeks ago and another last week. Theta accelerates as we get closer to expiration. Has been 4-6 k daily since Friday and as you can see I am developing profit of about 4k today. There is potential for another 11-44k if I held all the way to expiration but be aware now that Schwab is messing up TOS I usually get phone calls and multiple warnings to close the position by noon to 1 EST. Even if I have a winning position and want the “cash settled close” they will not let me hold it to market close. They will close it as a market order and you lose thousands.

Adjustments are either verticals, adjusting the short or long strikes, or in this case I added 2 calendar spreads. To the downside we can pull in the long lower put wing on the butterfly.

Here is what it looks like from the close today until expiration Friday. The trick is don’t be super greedy with these. You have a 10-70%profit take it. Don’t hold out for another 10k if you already have 23k in profits. Take the money and run. I will probably close this at 10K profits (total risk around 26k between the 10k margin and the cost of the butterfly, long call, and calendars). But if it is still dead center all week I may try carrying this one into Friday.

As soon as it closes I open the next 30 DTE cycle. Rinse and repeat, don’t have to watch the market all day, adjustments are as needed not all over the place. Have a life and make a bunch trading. The ideal trade, only time will tell 🙂