Big Move up in the markets yesterday. The move was enough to get us fully scaled into the October Bearish Butterfly. I added one 820/870/920 call butterfly to that position. The position is currently down about $650 and still looks fine as long as we temporarily top out under 870 as I am expecting.
The move also caused me to adjust the Sept M3. I was expecting a temporary pull back prior to this move to wiggle out of the Sept M3 at a small profit but of course it never came. With this move, I decided to lock down losses rather than try to win so I sold the 830 butterflies and sold 2 calls which puts my loss, after commissions at around $1500, very reasonable for the size trade. I do still have a chance to win or reduce losses if the market pulls under 835 prior to expiration which would “normally” be likely given the large up run we have had but not now with the very aggressive fed move yesterday but time will tell. I update you with any changes in the weekly update.
Have a great weekend everyone!