RUT Butterfly

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.

 

yes the wedge will probably hold.

 

Ur awsum.

 

good luck ..

 

I'm not in it. I am long the SPY Nov 120/25/30 fly from 1.75.

 

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.

 

Got filled around 0.42 for a max profit 1.58, a cheap bet..

 

Out half at 2.35. Will hold remainder to Friday's close.

 

Still long and strong!