Update on Live SPX put butterfly

blue butterfly on white backgroundUpdate on Bearish SPX Butterfly from last Thursday, October 29. SPX was around 2086 and I bought the 2065-2055-2045 put butterfly 20-40-20 for .52 1/2 debit.

Total cost of trade $1050. Target was about 50% profit target and Max Loss.

The trade is in the November 13 expiration which was 15 days from expiration when I entered the trade. Today we have about 10 days till expiration.

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SPX is currently at $2103. Trade is down about 35% or $350. Good loss, but within my plan.

I said I wouldn’t adjust the first week of the trade on the upside and Wednesday would be end of 1st week and cause me to re-evaluate the position.

Possible adjustment would be to roll up 8 of my 2055 short puts to the 2065 strike, this would eliminate all risk on the upside at expiration and actually turn my current loss into a winner!


As long as SPY over 2050 by Expiration, I win!

Downside is this adjustment would take my risk and capital from about $1000 to almost $8000. Don’t like these type of adjustments normally, though very effective. Will wait 1-2 days more for a pullback before deciding next move, stay tuned to this Bat Channel!


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