Fedex (FDX) & Walt Disney (DIS) Iron Butterfly Trade Ideas shows ROI of 91% and 94% respectively

Discussion in 'Options' started by Raltin, Aug 12, 2019.

  1. Raltin

    Raltin

    Raltin made two Iron Butterfly trade recommendations on Elite Trader Forums:


    With the options past expiry as of today, we can evaluate the forecast:


    • FDX - Sell Premium worth $11. The closing price of options for the same Option were $0.43 indicating a profit of $10.57 return of 91.91% ($11 (Received Premium at Trade Initiation Date) -$0.43 (Option Value at Expiry Date) / $11.50 (Margin to cover max loss))

    • DIS - Sell Premium worth $8 (see notes*). The closing price of options for the same Option were $1.42 indicating a profit of $6.58 and ROI of 94% ($8 (Received Premium at Trade Initiation Date)- $1.42 (Option Value at Expiry Date / $7 (Margin to cover max loss))


    *Since the OTMs were priced at 0, we wanted to be conservative and assume that the seller would only collect $8


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    Last edited: Aug 12, 2019