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RUT at 2017
Closing out lowest of all butterflies in RUT Scaling Income Butterfly. RUT is marching higher this morning and the lowest of all butterflies is the least useful part of this trade (unless you think there’s a chance that RUT trades back towards 1840)
RUT at 2024
I’m going to close the next lowest put butterfly, leaving a put butterfly centered at 1920 and call calendars at 1990
RUT at 2033
I’m going to close the last of all butterflies, leaving only the call calendars centered at 1990
RUT at 2053
I’m closing out the call calendars to avoid having to fight this move in RUT. The loss in this trade is well within a Max Allowable Loss range and I will look to open a new trade.
Post all questions in this thread
I’ve integrated the scans and watchlist columns into ToS from the bootcamp documentation but I can’t find the chart setups that Anya uses in the video (i.e. MRTOPTICK_v8_11_15_20, etc.). Any idea where I might find them?
Date: 3/16/2021
In this video, I talk about removing risk out of the trade, once it moves in my favor:
CAT has earnings due out on 4/29
This is the biggest near term risk in the trade.
I’m looking for a swing trade position out in JUL expiration cycle. I am buying an IN/OUT spread, risking 1 to make 1.
CAT has been in a range for about 3 weeks and it is currently is a squeeze that I am looking to fire LONG.
If I am wrong, I am defining my risk by the amount of premium I am going to pay for this spread.
TRADE SET UP:
BTO $CAT 16JUL 230/240 CALL SPREAD
RISK: $470
REWARD: $530
POP: 44%Risk Profile:
JPM at 154.40
Here’s the daily chart of JPM
I’m looking at trend continuation in this stock and based on current option pricing, the expected move is +/- 12 for June expiration.
I’m buying an In/Out spread with about 50% prob of profit with 50 days until expiration. My upside targets are 157.70-160.36
Trade Setup:
BTO $JPM 18JUN 150/160 CALL SPREAD MID 4.83 DEBIT
RISK: $483
REWARD: $517
POP: 47.60%RISK PROFILE: 
PYPL at 259
Here’s the 195min chart:
PYPL has earnings in 2 days and this is the biggest risk in this trade. I’m setting up an InOut spread, risking 1 to make 1 with 45+ days until expiration.
Trade Setup:
BTO $PYPL 18JUN 260/250 PUT SPREAD MID 4.50 DEBIT
RISK: $450
REWARD: $550
POP: 50%RISK PROFILE: 
ROKU at 337
Here’s the 195min chart:
ROKU has earnings in 3 days and this is a big risk for this trade. I am taking a slightly bearish position here ahead of the earnings. I’m buying 340/320 put spread and I am selling 320/305 put spread to offset cost of the long put spread. This makes it an unbalanced put butterfly with 18 days until expiration. If ROKU rallies after earnings, this trade will lose 50%+ of it’s value. I am going to assume full risk on this trade and size the trade accordingly.
Trade Setup:
BTO $ROKU 21MAY 340/320/305 PUT BUTTERFLY MID 4.40 DEBIT
RISK: $440
REWARD: $1550
POP:52%RISK PROFILE: 
ROKU at 305.85
Chart:
I’m going to make an adjustment, removing most (if not all) risk out of this trade.
I’m going to spread the short 320 puts and convert this trade from a broken wing put butterfly into a put condor.
Here’s the video covering this adjustment:
Trade:
TOS order: BUY 1 +2/-1/-1 CUSTOM ROKU 100 21 May 21/21 May 21/21 May 21 320/310/335 Put/Put/Put @4.45 LMT
PYPL at 247
I’m going to close out this trade here and may consider entering another bearish trade on a bounce up to 260
Trade: BTC $PYPL 18JUN 260/250 PUT SPREAD MID 6.30 CREDIT
ROKU at 308.32
I’m going to exit this trade with 10 days to go. We should be able to lock in 40% here.
Order Ticket:
BUY 1 -1/-1/+1/+1 CUSTOM ROKU 100 21 May 21/21 May 21/21 May 21/21 May 21 340/305/310/335 Put/Put/Put/Put @1.80 LMT
