06/30 MNX Iron Butterfly

I started peeling off spreads on the trade. At the end of day Today it was up around 12% ROI, however, one needs to be very careful when taking this type of trade "off the table". This position is hedged in many ways, so, when you take one spread off, you need to make sure it won't mess up the delta on the position.

I've seen one of Dan Harvey's mentoring video, where the student gave up his entire profits by not being careful when exiting the trade. He got caught up in a price swing and ended up dancing in the wrong side of the market (buying tops, selling bottons sort of speak)

Case in point: Taking one iron butterfly right now will immediately leave me with 35 deltas, so I need to also sell the long CALL contracts to balance this delta back to neutral. Doing so during wide market swings may cause you do lose money in a flash. Because MNX was swinging wildly in the final minuts, I was extra careful not to go in and start carving out spreads. In the end, I took only one iron butterfly off, it left me with flat deltas. I plan on continuing to exit the next few days.

Position's history day-by-day
06/29 MNX Iron Butterfly
06/26 MNX Iron Butterfly
06/25 MNX Iron Butterfly
06/24 MNX Iron Butterfly
06/23 MNX Iron Butterfly
06/22 SPX Iron Butterfly
06/19 MNX Iron Butterfly
06/18 MNX Iron Butterfly
06/17 MNX Iron Butterfly
06/16 MNX Iron Butterfly *New*

Return to home page