Hi Kerry. The HEDGE has not been updated since I am now retired. Prices of the BWB (or any butterfly) will definitely fluctuate according to implied volatility changes, etc. The HEDGE I outlined may not be suitable in the current environment. Many other hedging protocols have been devised by various individuals at Aeromir and elsewhere. Some of these include ratio spread hedges, long puts, put debit spreads. market-inverse ETF hedges, etc. If you are hedging a portfolio I suggest using software which will beta-weight your portfolio against an index, e.g. SPY and which will then calculate the number of puts or inverse ETFs to buy depending on how aggressive you wish your hedge to be. If you are hedging individual positions I suggest hedging with OTM put debit spreads which will not completely invalidate your profit objectives but which will still mitigate losses. Also, you might simply choose (as I often do) to buy back (cover) short positions at pre-determined trigger points on the way down. This is my main approach to hedge the risk with Boxcars and hedged condors. For our larger portfolio most of the hedges revolve around non-correlated ETFs including currency and emerging market ETFs. Charts showing correlations of a variety of ETFs to SPY are available for free. Hope this helps.
