SPX Butterfly Update, Plus a New Trades

The first butterfly of the month was a bit rocky, but even though it was rocky and I made money, I decided to added another one. The butterfly I added was a quarter of my regular size, which is probably the best part of this trade. Last Thursday and Friday we had some big market movement to the upside, and I had to fix my trade by adding a couple flys. Below is the risk graph of the current trade. The problem that I had with this trade is that the market moved 3+% in a two day period, forcing me to buy a couple butterflies at juiced up prices. My plan now is to manage the two out side short strikes. If the market can get to either short strike I will probably take the lower fly off and roll that fly higher 20 or 30 points. I will work this trade into a winner.

Another small trade that I have added is a short straddle on EEM. I have been watching the intrinsic and extrinsic value on the Aug option and I feel setting this trade was a good idea based on price. Plus Aug contracts have  17 days left to trade, and my risk is pretty small.

 

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