Stock / Symbol: SPDR S&P500 ETF / SPY
Option Strategy: broken wing butterfly;
Date / price at trade entry: Mar 4 / $152;
Price at trade exit: $155.82;
Reasoning: Should have closed this one out when our stop was first violated. Made some sense to hang in there, waiting for a pullback while the position's net theta was positive, but theta is now at just .03. Going to close the trade here to limit losses.
Closing Trade Details:
STC 3 SPY Apr13 155 puts
BTC -4 SPY Apr13 153 puts
STC 1 SPY Apr13 151 put
for a credit at the bid + .01. Current bid is a credit of $1.22.
Max Risk: $260
Max Reward: $300 or 120% @ 153 ($140 between 0 - 151) by Apr exp
Profit Range: between $0 and $154 by Apr epx
Suggested Downside Stop NA
Suggested Upside Stop @ $154.15
Profit / Loss upon fill: ($125) pre-commission