Wednesday, April 7, 2010

04/07 NDX Fast Iron Butterfly (from 03/15)

Here is the inventory of what I have left on this position:
-2 APR 1900/1800 put credit spread
+1 MAY 2050 call
-1 APR 1950/1850 Put credit spread
-1 APR 1950/2050 Call credit spread
As I analyzed the position, I decided to leave it alone for one more day, the worse that can happen is we come back to where we were a few days ago and I pull the plug. On the other hand, if we go down Tomorrow it will further help the trade and it may make sense to condorize it. So far I have not seen a good way to condorize the position without leaving it exposed to a lot more risk than reward.

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