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SPX at 4558
I’m setting up a slightly OTM Put Butterfly, using 50X40 wings, 24DTE
BPR = difference between strikes (1,000) + debit paid
For a 10,000 BP allocation I will go with 5 contracts and potentially roll upper long wing down from 10 to 30 points
Rolling upper long wing down 30 points will make it a 50X20 butterfly with BPR of $3,000 – any credit collected
So this could possibly take total BPR to $10,000
On a move higher, I will roll upper long put down, collecting a credit and eliminate upside risk
On a move lower, I will roll lower long put higher, paying a debit but it will not take up any more BP
PT 10% ROR, stop at a loss of 12-15%
Risk Profile:
Order Ticket:
SPX at 4470
I’m going to roll 4520 put down to 4505 strike for a debit
Order Ticket:
SPX at 4470
I’m going to roll 4520 put down to 4505 strike for a debit
Order Ticket:
SPX at 4487
I’m going to roll the lower long put down 10 points. This will flatten out T+0 line, increase risk on the downside, decrease risk on the upside and it will all be within the original BPR
Risk Profile:
Order Ticket:
SPX at 4450
I’m going to roll the short 4505 leg down 10 points for a debit. This will reduce risk on the downside, increase risk on the upside.
So far, SPX moved -1.25SD in 6 days and this position near break even.
Risk Profile:
Order Ticket:
SPX at 4434
I’m going to take partial profit in this trade, closing 3 of 5 contracts
Order Ticket:
Risk Profile:
Closing 3/5 of the position take my BRP down to $1,595 from original $5,200
SPX at 4446
This pos has reached profit target. Time to close and move on.
Risk Profile:
Order Ticket:
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