New Trade Entry: SPX Weekly for April 1 Cycle. Below is this week's position:
SPX Position Entered Thursday, March 28
SPX April 1 SPX Iron Butterfly
April 1 SPX Iron Butterfly centered at 1565
Time of entry: 10:30 am Eastern. SPX price: 1,564.83 at entry; VIX at 12.72
Call spreads: -1565/+1595
Put spreads: -1565/+1535
Credit received: $15.00. Please note that approximately one hour after trade entry, credit increased to 15.30 for this position, with SPX at 1567. This is because the price moved higher than our center strike.
Maximum margin/risk is $3,000 (width of wings)
Buying power reduction: $1,500 ($3,000 less credit of $1,500). This leaves $1,500 (less commissions) for adjustments.
Adjustment trigger points:
- Upside if SPX reaches 1575: Call spreads will be rolled up 20 points
- Downside if SPX reaches 1555: Put spreads will be rolled down 20 points
Closing order is in to close the position for a $13.40 debit, which will be a net gain of $150 after commissions.
Trade will be exited if max loss of $300 is reached.
I will post an update as the trade progresses.
As always, stay keen on your risk management and trade carefully.