New Trade Entry: SPX Weekly for March5 Cycle. Below is this week's position:
SPX Position Entered Thursday, March 21
SPX March5 SPX Iron Butterfly
March5 SPX Iron Butterfly centered at 1550
Time of entry: 11:20 am Eastern. SPX price: 1,551.97 at entry; VIX at 13.18
Call spreads: -1550/+1580
Put spreads: -1550/+1520
Credit received: $17.05
Maximum margin/risk is $3,000 (width of wings)
Buying power reduction: $1,295 ($3,000 less credit of $1,705). This leaves $1,705 (less commissions) for adjustments.
Adjustment trigger points:
- Upside if SPX reaches 1560: Call spreads will be rolled up 20 points
- Downside if SPX reaches 1540: Put spreads will be rolled down 20 points
Closing order is in to close the position for a $15.45 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.