High Octane 2 Day SPX Butterfly

( From Ally Invest Webinar Today)

Buy 1  Nov 8  2580 C, Sell 2  Nov 8  2590 C,  Buy 1  Nov 8  2600 C,  $3.65 Debit

2 Step Risk Management Process ( No Adjustments)

#1  Sell  2 ATM Calls and Buy 1 OTM call 10 points up and down from short strike. Enter on Monday morning, expiration will be Wednesday, 2 days further out.

#2   Profit Target is about 10% of debit and risk of $365 for each 1 Butterfly. Will sell out Butterfly if Debit hits $4 or higher. Ideally, want to get out today, latest, Tuesday by Lunch. Max loss, would get out if Debit decreased below $3.15. When I exit trade for either a profit or loss, it would be for a credit.

 Dan Sheridan  


options trading courses

2 replies
    • Mike Sheridan
      Mike Sheridan says:

      Yes, the average true range is narrowing , that means the market is not moving as much as it did a few months ago.


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