I was creating revers butterfly, and It looks perfect to me. Properly Hedged and Maximum Probability of profit. But I had doubt when this is so good why don’t people use this? So I have few questions.
What are the chances of losing money? other than Expiring within break even points.
Do I really need to wait till expiry OR may be someday i can get decent profit before expiry itself.
Note: I read and watched videos on this , but knowledge is limited to the one who is sharing. So I Asked here for multiple opinions.
Because it will block your capital. So, it’s a waste of time for retail traders. Safe strategy for traders with huge capital, but not for retail traders with limited capital.
Problem of this strategy i found that if the market moving in our direction either side can’t see the profit that is the problem you only see the profit at the expiry day only .
when we see this pay off chart , we think that banknifty moving definitely wildly in this period but even if banknifty move wildly you cant see the profit .it all about how it behave in expiry
