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TSLA Broken Wing Butterfly With Calls

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by Gavin in Blog
November 30, 2020 0 comments

Today we’re looking at an options strategy called a Call Broken Wing Butterfly using TSLA stock as an example.

In this trade we’re buying the January $700 strike call, selling two $720 calls and buying one $760 call.

This generates around $220 in premium with $1780 capital at risk.

I would close the trade early for a loss at -15% or around -$265.

Otherwise hold to expiry.

It’s important to remember that options are risky and investors can lose 100% of their investment.

This video is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

Get It Now