14-Day auo-adapting trade on SPX by Matt Williamson
The FruitFly is a short-term broken-wing butterfly trade on the SPX that auto-adapts to market volatility conditions and attempts to capture the spread between implied volatility and realized volatility.
When traded properly, it’s very unlikely to take losses in 4 out of the 5 primary market conditions (Strong Bullish, Bullish, Neutral, Bearish). Like most income strategies, it will suffer in a Strong Bearish Market akin to 2008.
WHAT IS INCLUDED
The Fruit Fly Trade Alerts inludes everything you need to learn how Matt Williamson trades the Fruit Fly trade.
REAL TIME TRADE ALERTS
All working orders and fills are sent to you via email and/or SMS text message in real time as Matt trades
WEEKLY RECAP VIDO
Watch a video of what happened in the past week and Matt's plans for the following week.
UPDATED TRADE IMAGES
A screen capture of the current trade is uploaded frequently to keep you updated on what Matt's trades look like.
PRIVATE SKYPE CHANNEL
Ask Matt and other subscribers questions about the Fruit Fly trade.
ALL WEBINARS ARE RECORDED
All webinars and videos are archived for you to watch as many times as you want.
GETTING STARTED VIDEOS
Matt gives an overview of the Fruit Fly trade so you can learn how the details of how it works.
With the trade alert service, you’ll follow along with Matt as he trades a 1-lot Fruit Fly trade in a $10,000 RegT account.
You’ll get three alerts per entry/adjustment/exit.
- The first will let you know that we’re going to likely be making an entry/adjustment/exit, and what the order is likely to be. - The second will be an actual order. - The third will be a fill confirmation.
Note that all adjustments and most exits will be placed at 3:30pm Eastern Time near the close. “Heads-up” alerts will generally arrive midday.
By trading this strategy and paying attention to what is going on under the hood, you should learn: -
- How to manipulate variables of a broken-wing spread to achieve certain entry-position and adjustment goals - How to use theta as an adjustment trigger - The effect of charm (change in delta over a period of time) and how to use it to avoid over-adjusting a position - The effects of market volatility on butterfly pricing - How to hedge with calendarized verticals
Trade alerts in this service are made in real time in a ThinkOrSwim live account with Reg-T margin. The normal entry size is a 1-lot of SPX options which requires approximately $4,000 of planned capital. The purpose of the service is for you to watch professional traders trade a live account so you can learn how to do it yourself by following along and asking questions.
Capital Discussions and Matt Williamson are not broker dealers or investment advisors. The Fruit Fly Alerts are NOT trade recommendations. We don't know you or your situation and have no way of knowing what level of risk is appropriate for you. You have to make your own trading decisions.
The risk of loss in trading options can be substantial so please be aware of all of your risks prior to placing any live trades. You are solely responsible for trades you open.