XME Broken Wing Butterfly

I wanted to update and share one of my positions in XME. I set this trade a few days ago, and so far its working out fairly well. Now if you look at my orders you will see my (A) adjustment and my (B) adjustment. Typically when I trade BWBs and it goes my way I will turn the trade into an equal distance butterfly, I’d sell the 32 and buy the 36 strike, and in most cases I will turn this trade into a risk free fly. Now if XME heads lower I will sell the 38 strike and buy the 42 strike to widen out the tent. One thing I’m watching right now is the 36/32 vertical, currently its trading for .28 debit. If I can buy that spread for .15 or lower I will, and that will help me lock in my gains and turn this trade risk free.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s