“Most people hunt the kill.
But the ones who build the terrain?
They eat forever.”
Purpose: Capitalize on clean trend support and structure with a low-cost entry that allows you to harvest premium before the breakout, and optionally tighten the structure to a butterfly when the breakout becomes likely.
Base Strategy: Short Put Ratio Spread
Example: +1 31P / -2 30P (AAAU)
Entry credit: ~$1.44
Structure: 27 DTE, high POP (>99%)
Reason: Price near support, low probability of hitting short strike
Theta-driven profit engine with low directional pressure
Conversion Strategy: Butterfly Overlay
Trigger: Price begins to drift toward the short strike, or flag tightens near inflection
Move: Buy 1 lower put (e.g., 29P) to convert ratio into butterfly
Structure: +1 31P / -2 30P / +1 29P
Result: Caps downside risk and tightens profit zone
Exit: Max profit if price pins near short strike at expiry
Psychology of the Setup:
"Start with the house's money, then shape the bet." You’re not chasing the move — you’re pre-positioned. Use the casino’s chips (credit from wide ratio) to build structure that pays on drift, stall, or controlled breakout.
Ideal Conditions:
Price near clean structural support
Flag forming above key moving average (e.g., 200D)
IV elevated but not extreme
No bid or low open interest on short leg = market not pricing breakdown
Exit Scenarios:
Full hold: Price stays above both strikes → keep full credit
Mid-cycle flatten: Price begins drifting → convert to butterfly
Spike or fail: Close early for partial gain, roll if needed
Repeatability Score: ✅✅✅✅☆ This setup is ideal for weekly/monthly cycles, ETF swings, and earnings coil plays where clean structure exists.
But the ones who build the terrain?
They eat forever.”
Purpose: Capitalize on clean trend support and structure with a low-cost entry that allows you to harvest premium before the breakout, and optionally tighten the structure to a butterfly when the breakout becomes likely.
Base Strategy: Short Put Ratio Spread
Example: +1 31P / -2 30P (AAAU)
Entry credit: ~$1.44
Structure: 27 DTE, high POP (>99%)
Reason: Price near support, low probability of hitting short strike
Theta-driven profit engine with low directional pressure
Conversion Strategy: Butterfly Overlay
Trigger: Price begins to drift toward the short strike, or flag tightens near inflection
Move: Buy 1 lower put (e.g., 29P) to convert ratio into butterfly
Structure: +1 31P / -2 30P / +1 29P
Result: Caps downside risk and tightens profit zone
Exit: Max profit if price pins near short strike at expiry
Psychology of the Setup:
"Start with the house's money, then shape the bet." You’re not chasing the move — you’re pre-positioned. Use the casino’s chips (credit from wide ratio) to build structure that pays on drift, stall, or controlled breakout.
Ideal Conditions:
Price near clean structural support
Flag forming above key moving average (e.g., 200D)
IV elevated but not extreme
No bid or low open interest on short leg = market not pricing breakdown
Exit Scenarios:
Full hold: Price stays above both strikes → keep full credit
Mid-cycle flatten: Price begins drifting → convert to butterfly
Spike or fail: Close early for partial gain, roll if needed
Repeatability Score: ✅✅✅✅☆ This setup is ideal for weekly/monthly cycles, ETF swings, and earnings coil plays where clean structure exists.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.