closed my Bearish Call Butterfly spread today for
Post# of 128
Posted On: 06/18/2012 3:27:41 PM
Re: Lorddarkhelmet #119
closed my Bearish Call Butterfly spread today for a $0.40 credit. Purchased it at $0.30 debit. made 33%.
What is nice is that FB is up huge last few days, moving away from my $25 target.
That is what is nice about these directional butterflies. Very forgiving. And since the overall position had a Net negative Vega, the price of the butterfly went up as volatility dropped. So my VEGA outweighed my Net negative Delta, and I still profited even though FB is up about $4 since my entry giving me a 33% ROM.
What is nice is that FB is up huge last few days, moving away from my $25 target.
That is what is nice about these directional butterflies. Very forgiving. And since the overall position had a Net negative Vega, the price of the butterfly went up as volatility dropped. So my VEGA outweighed my Net negative Delta, and I still profited even though FB is up about $4 since my entry giving me a 33% ROM.
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