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January 21, 2014 at 10:09 am
#2212
Steven Place
Keymaster
We haven’t hit our upside adjustment yet, but we are close enough and the directional exposure relative to the theta we are receiving is too out of whack.
To adjust, we will add another iron butterfly, this time centered around the 1190 strike
Sell Mar 1190/1140 bull put spread for 18.70
Sell mar 1190/1240 bear call spread for 16.20
This moves our upside breakeven up by about 30 points and gives us a lot more theta gains.