Butterfly Spread

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This was our second RUT Butterfly we put on this month. This trade was placed with RUT trading around 658. Immediately upon placing the trade, the index, along with the rest of the [...]

ABOVE: Position as we start to unwind it. Profit target hit.
ABOVE: Left on one of our extra long calls as lottery ticket.
Our profit goal is locked in.
Closed out our July Butterfly / Iron Condor for just under 9% profit.

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Our July Iron Condor / Butterfly Spread is off and running. So far so good as we have a profit already and have our ‘ whipsaw curbs’ in place while retaining a good theta. Stay tuned…

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Technorati [...]

Closed out our last June Iron Condor Butterfly Spread today for right under a 5% gain. Todays big down move in reaction to employment numbers put the position right at the sweet spot at the open. Rising vols initially hurt the position a bit, however as the morning progressed, what appeared to be some friday [...]

This is our 3rd Butterfly Spread we’ve traded this month. Even with this very volatile month because of our new ‘flex’ adjustments we’ve been able to bring in a profit on each one. This trade is just now starting to show a profit and we expect (knock on wood) to close this out profitably early [...]

During the ‘flash crash’ where the dow sunk 1000 points we had an iron butterlfy position on that performed remarkably well thanks to a simple, cheap, way out of the money put adjustment we had made earlier in the day.
Taken at 11:40 AM
A couple hours before the big drop, we put on a simple put [...]

April 2010 Expiration
This months Butterfly Spread Trade was another pretty much ‘perfect’ trade. Very little management was required - lazy trading at it’s finest. Opened this trade on 3-21-10 - closed it on 3-29-10 - for an open trade duration of just 9 days.

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When you look at a risk graph of the butterfly spread, you can see that the butterfly payoff is tremendous - especially when compared to other option income spread strategies such as the iron condor, the credit spread, the diagonal, double diagonal, the calendar, double calendar, etc.
Depending on where the wings are placed on these [...]

Our April ‘10 Butterfly Spread is off and running…

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Technorati Tags: Butterfly Option, Butterfly Spread, Credit Spread, Iron Condor

Butterfly Option Spreads are one of the most ‘robust’ option trades of the ‘main’ option spread income strategies. In other words, the butterfly spread can withstand more ‘abuse’ from a volatile market than say the iron condor, diagonal, or calendar, - and still come out smelling like a rose.
One reason for this has to do [...]