Stock / Symbol: SPDR S&P500 ETF / SPY
Option Strategy: [private_monthly]broken wing butterfly[/private_monthly]
Price at trade post: $152
Reasoning: Continuing on my premise that the market is still due for another pullback, I'm putting on a [private_monthly]broken wing butterfly[/private_monthly] on SPY. The greeks going into this trade are: -24 delta, 0.9 theta, and -5.75 vega. I'm setting an upside stop at 154.15.
BTO 3 SPY Apr13 155 puts
STO -4 SPY Apr13 153 puts
BTO 1 SPY Apr13 151 put
for a max net debit of $2.60 per contract. The mid is currently at $2.55 (day order, limit order). Note: if you're not filled today, it's ok to retry thru the end of this week but not after that.
Option Requirement $0
Total Requirements $250
Estimated Commission $12
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