Followup to yesterday’s CBOE Blog

Increase-IncomeYesterday I put out a trade idea at the CBOE Blog. It was a Broken Wing Butterfly in SPX. I was using the October expiration. The trade was buying 1 1975 call  and selling 1  1945 call. In the puts, buying 1  1905 and selling 1  1945. Total Credit was $2900. With sharp sell off today, I would buy 1  1915 put and sell 1  1905 put for a debit of around  $3.90  or $4.00. This would balance out the butterfly and cut the risk of the trade from $1100 on the downside to around $500.

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