New Trade Entry : SPX Weekly Iron Butterfly for the April Cycle. This is the April monthly cycle expiring on Thursday, April 18. Below is this week's position:
SPX Position Entered Thursday, April 11
SPX April 3 SPX Iron Butterfly at time of entry
April SPX Iron Butterfly centered at 1595
Time of entry: 3:25 pm Eastern. SPX price: 1,592.91 at entry; VIX at 12.40
Call spreads: -1595/+1625
Put spreads: -1595/+1565
Credit received: $14.90
Maximum margin/risk is $3,000 (width of wings)
Buying power reduction: $1,510 ($3,000 less credit of $1,490). This leaves $1,490 (less commissions) for adjustments.
Adjustment trigger points:
- Upside if SPX reaches 1605: Call spreads will be rolled up 20 points
- Downside if SPX reaches 1585: Put spreads will be rolled down 20 points
Again, I want to stress to everyone in this trade to review the article posted April 6 titled Gaps? Whipsaw? which contains some very important, additional guidelines to manage this trade.
Closing order is in to close the position for a $13.30 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.