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
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.
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.