New Live Butterfly Trade

Butterfly species Graphium weiskei "Purple Spotted Swallowtail"Trade Idea in SPX : Unbalanced or Broken Wing Butterfly

Trade: SPX around 1934 and looking at October 16 expiration              (regular October expiration).

Buy 1 1965 call     Sell 1  1935 call        Buy 1 1895 put     Sell 1   1935  put    Total Credit   $29.75 credit

Commentary

SPX has been in a range between roughly 1900 and 2000 since the correction. Market has still been volatile. This is a trade that has basically no risk on upside but it does have downside risk.

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In a volatile market I like to eliminate one of my main 2 enemies , Volatility or Price. On the upside I have achieved that by eliminating both price and volatility risk.

My margin or risk is $1025. I actually just did this spread for a credit of $29.75 credit. Follow me on this blog for weekly updates on profit target, Maximum loss, and adjustments for this trade.

I will keep you posted throughout this trade till I get it off.

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