Closed the Trade

Yesterday on March 21st I sold the 810 butterfly for $1555. and today I sold the 830 butterfly for $2020. The total commissions for the trade were $48. and a loss of $485. 

Adjustments

I sold the 770 and 790 put butterfly for $560 and $865 respectively and bought the 810 and 830's. The RUT hit the  830 add point and still  had a delta theta ratio over 1.5 so I rolled the lowest butterfly to 830, this gave me a delta theta ratio of around one so this is good. I also anticipated a problem of going over the maximum amount allotted for the trade of $5000. so i kept it as a 2 butterfly trade. The RUT is now at 1:52 PM 842.97 so there is a good chance that it will be above the 840 roll point at 3:30 that I use for the official check the trade time so it would have triggered the roll to 830 anyway.

Risk graph after the adjustments

RUT Closed Above Add Point

The RUT closed at 831.23 above the second add point but had a large up move during the last hour, strong retail sales had the markets going up from the open there was= a Federal Reserve Board meeting in the middle of the day where the market traded in a range and then went sharply higher after JP Morgan announced a buy back program and raised their dividend,  I did not add the butterfly at 810 today.

One Day One Minute RUT Chart

First Add Point

We hit the first add point at 810 today so I added the second RUT butterfly for $1170. the Market went up sharply today after a solid jobs report and progress on the Greek debt crisis.

Five day five minute chart

Risk graph after first add

RUT Butterfly

I reentered the RUT butterfly with the short strike at 770 at a price of  $1160. The add points are at 810 and 830. Roll points are at 840, 850, 860, 870, 890, and 910.

Daily Price  chart 1 year

Risk graph of the RUT butterfly

Sold RUT Butterfly

Risk Graph of RUT

Today the butterfly hit the sweet spot where the delta got very close to 0 at the top of it's t-0 line, for $1530.  The $1530 minus the $1070 it cost leaves $460 less the $12. in commissions gives a profit of $448. that is 9.1% of the $5000. allotted for the trade or almost 42% of the $1070. that was actually used.

3month daily price chart of the RUT