TRADE IDEA: SPY DEC 21ST 256/2X261/263 BROKEN WING BUTTERFLY
Metrics:
Probability of Profit: 75%
Max Profit: 2.50/contract
Max Loss: 2.50/contract
Break Even: 258.50
Delta: 3.59
Theta: .43
Notes: Looking to add some small long delta to my SPY core position.
Unlike short puts or short put verticals, this setup will actually benefit from price moving in toward the setup. Although max profit is realized on a "pin" to the short put strike at 261 at expiry (a virtual unlikelihood no matter what universe you're living in and how much hopium you're smoking), I'm just looking at it as a "risk one to make one," high probability of profit hedge that I'll take off when it's no longer needed and/or starting at 20% max (.50 -- which is the credit I hope to get filled for).
Probability of Profit: 75%
Max Profit: 2.50/contract
Max Loss: 2.50/contract
Break Even: 258.50
Delta: 3.59
Theta: .43
Notes: Looking to add some small long delta to my SPY core position.
Unlike short puts or short put verticals, this setup will actually benefit from price moving in toward the setup. Although max profit is realized on a "pin" to the short put strike at 261 at expiry (a virtual unlikelihood no matter what universe you're living in and how much hopium you're smoking), I'm just looking at it as a "risk one to make one," high probability of profit hedge that I'll take off when it's no longer needed and/or starting at 20% max (.50 -- which is the credit I hope to get filled for).
Trade active:
Filled at 9:11 for a .50/contract credit.
Trade closed manually:
Closed for an .11/contract debit; .39 ($39)/contract winner.
