VIDEO: Office Hours - The Broken Wing Butterfly
Tony Battista’s Favorite SPX Income Strategy
Hi GYP Member,
Tonight’s Office Hours was one of those sessions that’s hard to write a quick recap for — because almost every minute had something worth keeping.
We covered:
Why this market environment is psychologically dangerous for premium sellers, even after big wins
TonyB’s signature setup he calls “The BAT Trade” — the Broken Wing Butterfly
Why selling naked calls into a runaway rally is one of the fastest ways to wreck a year’s gains
How to start putting capital to work when the market is sitting near all-time highs (without freezing)
The position-sizing rule TonyB says blows up more good strategies than the strategies themselves do
“Markets can stay irrational longer than traders can stay comfortable.” — TonyB, tonight
That single line shaped half the conversation. Even experienced traders get trapped trying to call a top too early after a big rally — and the reality of how that feels in real time is something we don’t usually see discussed publicly. TonyB shared real examples from his own book.
The Broken Wing Butterfly is one of the most asymmetric, capital-efficient structures in the SPX playbook — when sized right, properly structured, and deployed at the right moment in the volatility cycle. Tonight we walked through:
✅ When TonyB wants to put it on (and when he won’t)
✅ Why the “broken wing” geometry creates 80–95% probabilities of profit
✅ The ~41 DTE example walked through live
✅ Where to place the structure relative to the expected move (this is the part most retail traders get wrong)
✅ Why this trade is fundamentally safer than naked calls in a momentum market
✅ Position-sizing rules so a high-probability setup doesn’t become an account-killing mistake
Plus the full video replay of tonight’s Office Hours is below for paid members.
🎥 Watch the Full Replay
👉 Watch the full Office Hours replay here:
