Matt Williamson's Fruitfly Trade Alerts
 
14-Day auto-adapting trade on SPX.
What is the Fruitfly?
 
The FruitFly is a short-term broken-wing butterfly trade on the SPX that auto-adapts to market volatility conditions and attempts to capture the spread between implied volatility and realized volatility. When traded properly, it’s very unlikely to take losses in 4 out of the 5 primary market conditions (Strong Bullish, Bullish, Neutral, Bearish). Like most income strategies, it will suffer in a Strong Bearish Market akin to 2008.
 
About Matt Williamson
 

Matt came to options trading through the back of a Technical Analysis book, and has been hooked ever since. After trading covered calls and cash-secured puts on value stocks with limited success, he tried a market-neutral approach in October 2014. 

Talk about bad timing! 

Having assumed the iron condor was just a flawed approach (later learning that it’s not), he tried out-of-the-money credit spreads, also with limited success. He found a bit of a groove with diagonals spreads on equities, but continued searching for more robust strategies. Then he found his way into butterfly trading and has honed that skill over the past few years and has crafted a number of strategies to take advantage of various market conditions.

Why Trade the Fruitfly?
 

The FruitFly has very positive expectancy, with historic testing showing positive returns across most market conditions. 

There are no entry requirements, meaning the trade is “always-on.” 

Combined with a very fast trade cycle (typically less than two weeks per cycle), this means lots of cycles in a given period. The capital commitment is also very low, requiring only $4k per lot.

Fruitfly Track Record
 

Fruitfly Trade Live Trading Results

Trade
Expiration
Yield on
Total Account
Dec 2016 2.05%
Jan 2017 6.87%
Feb 2017 1.62%
Total for 3 Months 10.54%
Average 3.51%
About Matt's Fruitfly Trade Alert Service
 

With the trade alert service, you’ll follow along with Matt as he trades a 1-lot FruitFly trade in a $10,000 RegT account. 

You’ll get three alerts per entry/adjustment/exit. 

  • The first will let you know that we’re going to likely be making an entry/adjustment/exit, and what the order is likely to be. 
  • The second will be an actual order. 
  • The third will be a fill confirmation.

 Note that all adjustments and most exits will be placed at 3:30pm Eastern Time near the close. “Heads-up” alerts will generally arrive midday.

What's Included in a Subscription
 
  • Overview video of the trade setup, upside/downside management and adjustments triggers,
  • Real-time alerts sent by SMS & email for each entry/adjustment/exit trade
  • Weekly update videos going over each entry/adjustment/exit trade and why they were made.
  • Monthly Q&A session and trade re-cap video.
Why Learn the Fruitfly?
 

By trading this strategy and paying attention to what is going on under the hood, you should learn:

  • How to manipulate variables of a broken-wing spread to achieve certain entry-position and adjustment goals
  • How to use theta as an adjustment trigger
  • The effect of charm (change in delta over a period of time) and how to use it to avoid over-adjusting a position
  • The effects of market volatility on butterfly pricing
  • How to hedge with calendarized verticals
Ready to Subscribe?
 
Monthly
$
119
  • Built on Bootstrap
  • HTML5 / CSS3
  • Responsive
  • Elegant Design
 
Quarterly
$
339
  • Built on Bootstrap
  • HTML5 / CSS3
  • Responsive
  • Elegant Design
 
Yearly
$
1189
  • Built on Bootstrap
  • HTML5 / CSS3
  • Responsive
  • Elegant Design