The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to talk about iron butterfly management, close in full or just the inside legs. Many of you guys who follow us and follow the trades that I do… I do a lot of iron butterflies. I love doing them. We talked about them in detail about why we like them as straddle synthetics basically and then the ability to buy the outside legs for risk protection and margin protection for our account. And now, the question becomes – “When we get into a position that ends up hitting a profit target, what do we do? Do we close the full position or do we close just the inside legs?” Many people who are pro and elite members and follow the trades that I do, I will do both of these and it really just depends on the situation. And we’re going to talk about that here in a second. But I will sometimes close the entire position in full. Sometimes I will close just the inside legs and I kind of flip back and forth between doing