Diary | 2/19/2020 | SPY Butterfly
Updated
Description: Initiated this neutral strategy prior to some major moves yesterday. Did I know that was going to happen? No, but it definitely got me out of the trade faster.
Justification:
- Directional Play: No. This strategy adds balance to my vega numbers.
- Technical: Short-term zone of congestion.
- Fundamental: Earnings continue to improve; Fed really supportive; jobs data positive; ISM manufacturing higher; market participants equally split between bullish and bearish ; virus data (if correct) shows the growth in virus cases slowing; trade going in a positive direction; and so on.
If/Then:
- Take profit? 20% of credit received.
Strategy Details:
- Short and Long leg: 334/339/344
- Duration: Feb 24
Disclaimer: This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
Justification:
- Directional Play: No. This strategy adds balance to my vega numbers.
- Technical: Short-term zone of congestion.
- Fundamental: Earnings continue to improve; Fed really supportive; jobs data positive; ISM manufacturing higher; market participants equally split between bullish and bearish ; virus data (if correct) shows the growth in virus cases slowing; trade going in a positive direction; and so on.
If/Then:
- Take profit? 20% of credit received.
Strategy Details:
- Short and Long leg: 334/339/344
- Duration: Feb 24
Disclaimer: This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
Trade closed: target reached
Closed at 2.15DB.
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
Disclaimer
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