There’s a position so great, so volatile, and so exciting, that even if it expires worthless, there’s a chance traders can still profit. 

Here’s how it works…

Volatile weeks in the market cause wild intraday moves in the S&P 500. 

When the market moves up and down, we can take multiple opportunities to bring home profit on a particular type of play – even on the same day of expiration. 

I like to trade SPX since it is cash-settled. This means I won’t get assigned stock at expiration and any profits will show up in my account the next day. 

It couldn’t be simpler than that.

Once you learn how to set up a butterfly trade, you only need to do three things:

1. Send the order…

2. Wait to get filled, and…

3. Set up THIS three-step exit play…

Here’s my three-step exit plan to profit…

  1. Exit the first ½ at +100% profit
  2. Exit the next ¼ at +200% profit
  3. Let the remaining ¼ expire

And on Monday, here’s how we made 75% even when our butterfly expired worthless:

I recommended the SPX September 26, 2022 $3670-$3680-$3690 call butterfly for $1.00.

Traders had the chance to take ½ off at $2.00 (+100% profit)

Then take another ¼ off at $3.00 (+200% profit)

So, when the last ¼ expired worthless, they still made +75% overall.

I’ll be trading SPX again today and tomorrow in the Expiration Trader room. 

For new-to-butterfly traders, I like to break down our trade entry and exit so they can follow along in paper until they are confident to trade with their own cash.

I’d love for you to join us at 2:00 p.m. (ET) today to get in on the action and learn these valuable trades. 

We trade SPX every weekday, so there are many opportunities each week to profit.

Hope to see you then,

Mark Sebastian


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