I am trading Broken butterflies for more than a year. I am doing great using SPX. I am using a strategy to collect premium and Theta. This trade does better when it is opened under high IV, as it is Vega negative. I would like to learn a bit more about other ways to trade this spread. Does anyone trades this setup? How do you trade it in terms of DTE, BWB Short Strike Delta, etc.
Just copied this text from a blog post that analy
Here you have the full blog post: https://www.myoptionsedge.com/blog/spx-best-strategy-4-years-results
With VIX decreasing, trading Vega negative strategies is highly attractive.
SPY and/or SPX Iron Condors (or Butterflies) are the obvious choice in this environment.
I am trading some income strategies that give more flexibility for adjustments using structured variations, like the SPX Best or SPY Ride trades.
They give a bit more room to manage risk (Delta, mainly) when the price starts pushing to extremes.
Does anyone trades income strategies? Which ones are you trading?