I exited the November M3 position today. Due to the late entry this month and low IV levels, we had a reduced profit target of $2500. We also had an “unfortunate event” during entry where we lost $600. Therefor the corrected profit target on the position this month was $1900.
The end result was better than the adjusted profit target. We ended up with $2230 after commissions for a 4.5% profit on our planned capital of $50,000 OR 6.4% on our invested capital of $35,075
So yet another profitable month and on to December!
Speaking of December, I entered the December M3 position today. I entry position was 10 740/790/840 put butterflies, 1 760 RUT call and 5 76 IWM call. Since IV is still elevated, we had to over hedge the upside once again but only by 50%. This makes the current profit target 7.5% of $50,000 planned capital which is $3,750.
That’s it for now, we will be entering the bearish butterfly later in the week and I will keep you updated with any changes.
Bearish Butterfly page
Basic bearish Butterfly
May/June advanced Bearish Butterfly
Forrest one of my students on SMB…Trading the M3
M3 launch meeting