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Originally Posted by PaceAdvantage
...so even though the butterfly spread alone is a bearish trade, when combined with stock or calls, it brings it to a neutral trade in terms of delta.
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I guess I should have read more closely what you said. Perhaps that's why you have to pay him the money...so you can see exactly how he hedges.
From the video it appears to be a combination of rolling up (or down) the butterfly, vertical spreads, or purchasing calls.
After playing around with it for a while, I can't figure out exactly how he's doing it.
