Schwaaz's White Rhino

Simple Setup and Adjustments:

underylying: SPX
60 - 55 DTE on a down day if possible (Usually on Epiration Friday)
Broken wing butterfly: 60 point lower wing and 50 + or - point upper wing (use
upper wing to adj deltas)
ATM should be around 20 points above the shorts
adjust the upper long strike as necessary in order to start off with slightly negative
deltas
I trade 10 contracts per traunch which can cost anywhere between $14k and
$25k based on the volatility of the SPX( RegT or IRA margin). You can adjust the
beginning margin by changing the number of contracts.
You can scale it down to trade a smaller margin but it needs to not so small that
adding the BWF as the upside adjustment doesn't over power it.
Margin Control. Reverse Harvey (roll down longs in) to keep margin under an
acceptable amount.
planned capital is approximately $35k using 10 contracts.
target profit: $1,000 after commissions (usually around 4 to 8% depending on
adjustments and margin control)
max loss:
normally -$2,000 depending on the location of the price in relation to trade
if deltas are relatively flat and price is well within the tent, then you could go up to
a max loss of -$3,000.