Swing trading with Butterflies

Are you long 1 of the 2175 or 2??
I quote the " expensive" wing first.
Im guessing you are long 1 of the 2175 strike,risking 7 to make 43..


Global OptionsTrades said:
Opened a short position on Russell 2000 yesterday, expiring Friday.

Trade date: 11 January 2022
Security: RUT
Price at opening: 2167
Direction: Put
Expiry date: 14 January 2022
Strikes: 2100 / 2125 / 2175
Structure: 2 / 3 / 1
Opening Spread: 7.00
More...
 
taowave said:
Are you long 1 of the 2175 or 2??
I quote the " expensive" wing first.
Im guessing you are long 1 of the 2175 strike,risking 7 to make 43..
More...

You guessed right!

I tend to write them in ascending order because it seems conventional, flows better and seems more easily comprehensible, but to clarify for a position size of one:
long 2 2100 calls (at c.4 each)
short 3 2125 calls (at c.7 each)
long 1 2175 call (at c.20 each)
Net spread cost 7. Max closing spread is 50. Max profit is 43. Max profit > 600% (ignoring commission)
I place a series of closing orders significantly less ambitious than that!
 
I see what you are doing.....

We are talking puts :)



Global OptionsTrades said:
You guessed right!

I tend to write them in ascending order because it seems conventional, flows better and seems more easily comprehensible, but to clarify for a position size of one:
long 2 2100 calls (at c.4 each)
short 3 2125 calls (at c.7 each)
long 1 2175 call (at c.20 each)
Net spread cost 7. Max closing spread is 50. Max profit is 43. Max profit > 600% (ignoring commission)
I place a series of closing orders significantly less ambitious than that!
More...
 
I got the S&P wrong.

Trade date: 10 January 2022
Security: ES
Price at opening: 4589
Direction: Put
Expiry date: 12 January 2022
Strikes: 4505 / 4535 / 4565
Structure: 1 / 2 / 1
Opening Spread: 1.69
Close date: 12 January 2022
Trade duration: 2
Closing spread: -
Profit / (Loss): -1.69
Profit / (Loss): -100.0%

The RUT trade partially offset the loss.

Trade date: 11 January 2022
Security: RUT
Price at opening: 2167
Direction: Put
Expiry date: 14 January 2022
Strikes: 2100 / 2125 / 2175
Structure: 2 / 3 / 1
Opening Spread: 7.00
Close date: 12 January 2022
Trade duration: 1
Closing spread: 8.83
Profit / (Loss): 1.83
Profit / (Loss): 26.1%
 
Put fly on Nasdaq filled late on Friday and I didn't get around to popping it on here over the weekend. Closing orders filled this morning.

Trade date: 14 January 2022
Security: NQ
Price at opening: 15454
Direction: Put
Expiry date: 18 January 2022
Strikes: 15080 / 15220 / 15500
Structure: 2 / 3 / 1
Opening Spread: 42.25
Close date: 18 January 2022
Trade duration: 4
Closing spread: 55.25
Profit / (Loss): 13.00
Profit / (Loss): 30.8%
 
Opened a short fly on S&P500 today.

Trade date: 18 January 2022
Security: SPX
Price at opening: 4592
Direction: Put
Expiry date: 21 January 2022
Strikes: 4480 / 4520 / 4600
Structure: 2 / 3 / 1
Opening Spread: 12.05
 
Hi @Global OptionsTrades

Like it. Following the thread. New to Opts. Could you please help me understand the following:

1. If you are doing a long butterfly and your short contracts are ITM, then a. do you keep this open this Options Close. and b. do you get assigned on the short side and if so what is your plan ?

Example: ES 1/2/1 - 1 long call, 2 short calls and 1 long call. If you get assigned when 1 long call and 2 short calls are ITM and the short calls are the ones assigned, what is the plan ?

2. How many lots do you trade ?

Thank you
 
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