New Trade Entry : SPX Weekly Iron Butterfly for the May Cycle, 7 days prior to expiration. Below is this week's position:

SPX Position Entered Thursday, May 9

SPX May SPX Iron Butterfly at the close today:

May SPX Iron Butterfly centered at 1630

Time of entry: 10:45 am Eastern. SPX price: 1,629.35 at entry; VIX at 13.10

Call spreads: -1630/+1660

Put spreads: -1630/-1600

Credit received: $15.85

Maximum margin/risk is $3,000 (width of wings)

Buying power reduction: $1,415 ($3,000 less credit of $1,585). This leaves $1,585 (less commissions) for adjustments.

Adjustment trigger points:

- Upside if SPX reaches 1640: Call spreads will be rolled up 20 points

- Downside if SPX reaches 1620: 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.

Exit plan:

Closing order is in to close the position for a $14.25 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.

Happy Trading,

Dot Hazlin