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This was quite unusual a trade as I was expecting a move that never happened before (at least in $$). I mentioned that I was expecting a move of about $50 (Google was at ~$555) and here we are, Google dipped as low as 509 that is app $46 points move since then. Well, let’s not be so fussy about $50, I also mentioned that I am opening $510, $520 and $610 butterflies with the $10 interval to play Google earnings in a cheap way.
Here are the results:
- 610 call butterfly (600/610/620) opened at $0.35 per spread
- 520 put butterfly (510/520/530) and 510 put butterly (500/510/520) means an Iron condor consisting of spreads of Sell 520/buy 530 ($ 2.40 debit) and sell 510/buy 500 (credit $1.05)
- Total Investment = $0.35+$2.40-$1.05=$1.70 per spread
Closure of the trade:
- 610 call butterfyl, worthless now
- 520/530 sold for $8.75 credit
- 510/500 bot for $0.85
- Net credit = $8.75-$0.85=$7.85 per spread
Total Profit = ($7.85-$1.70)/$1.70=361%
If it never happened, doesn’t mean it can not happen or it will not happen.
Profitable trading, OP
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