RUT Butterfly

Discussion in 'Options' started by galvinlee888, Nov 10, 2011.

  1. For those who know me, you know that I seldom call a trade and I am right in most of the time.

    Below is one of the christmas gift:

    Buy the Iwm butterfly for Nov

    long 72(x1), 76 (x1), short (x2) 74 - you can use either call or put, whichever you can fill up with the cheapest. Max profit when IWM=74 by next Thursday.

    For today price: risk/reward is about 1/4

    You can use RUT if you have bigger account.

    I will revisit this thread next Thursday. Time to win some cash for christmas, good luck.
     
  2. yes the wedge will probably hold.
     
  3. Ur awsum.
     
  4. [​IMG]
     
  5. good luck ..
     
  6. I'm not in it. I am long the SPY Nov 120/25/30 fly from 1.75.
     
  7. I did something similar on your idea.

    70 74 78 callyfly in Nov for 20bps of risk. (small trade):
    about 10% notional


    paid about 1.45 for 2.55 of max upside (though if I get a $1 i'll be happy). got good execution because my broker doesn't let me trade flys directly so i had to trade as 2 callspreads and the second callspread (selling delta) was into the rally by chance.
     
  8. Got filled around 0.42 for a max profit 1.58, a cheap bet.. :D
     
  9. Out half at 2.35. Will hold remainder to Friday's close.
     
  10. Still long and strong!
     
    #10     Nov 15, 2011