Closed One SPX, and Opened Another

Yesterday I reduced my risk in my big bread and butter trade by taking off one butterfly I had at the 1335/1385/1435 strikes. And today I wanted to take all the risk off the table by closing the whole position. I closed the position up 7.75% which is a little less then I normally make on this trade, but I feel good about the reduced risk and about any potential downside capitulation we could have. If you have been following my butterfly trades then you know that this has been a rough couple of days. One big thing that I noticed that has not happened in a while was that the nat price on the spreads were not even close to the mid price. Typically I can get filled pretty easily, 10 to 15 cents lower from the nat price. The market makers didn’t want anything todo with my spreads, but I lowered my offer and eventually got filled. All in all a good month, but I couldn’t resist adding a fresh fly at a quarter the size. Below is the risk graph of my double dip fly.


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