Options Boot Camp 407: Rise of the 0DTE Iron Butterfly
Summary
Host Mark Longo and guests Dan Passarelli and John Kamycic explore the use of butterfly spreads in the zero-DTE options environment. They focus on trading short iron butterflies on SPY and SPX, a strategy that capitalizes on rapid implied volatility decay within minutes of the market open. The hosts discuss entry timing, spread width, and risk management, noting that this approach offers a controlled, low-stress alternative to traditional long-duration options trading.
Topics discussed
Show intro and Options Bootcamp welcome
Guest introductions and network promotions
Overview of zero DTE butterfly strategies
Anatomy of a long butterfly spread example
Rise in popularity of zero DTE butterflies
John's live example of selling zero DTE iron flies
Risk management and backtesting iron fly spreads
Entry timing and market conditions for zero DTE trades
Dan's perspective and audience poll results
Refining trade parameters and profit targets
Psychological benefits of short-term option trades
Mail call: Audience sentiment on binary options
Updates on double calendar strategies
Listener question: Managing a long call calendar
Listener question: Choosing a favorite option strategy
Discussion on overrated options trading advice
Show wrap-up and upcoming program previews
Fantasy sports banter and sign-off
Listen ad-free on Castria