Managment Ideas for BWB's
One of the best ways to manage a broken wing butterfly is using the delta. It is actually pretty simple. Set a specific return in mind, for a BWB I would be shooting for at least 50%. Once you reach this point, start reducing the delta. There are a couple of ways to do this, but the one that locks in the most profit is by selling the debit side of the spread. If you are still bullish, you can consider simply buying in the short strike, this will turn the position into a synthetic long. Finally, you can just take broken wing flies off. The execution of these techniques is obviously more complex, but for now, explore how making these different adjustments affects the fly.