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Home › Forums › Income Trades › Tiered Income Trade in GOOGL
570 is hit, so we are going to roll the call side higher.
Buy to open Jul 550/580/610 call butterfly for 7.50
This is known as a “butterfly roll.”
We are going to do one more butterfly roll. This trade has effectively converted into an iron condor trade
Buy to open Jul 580/610/640 call butterfly for 8.50 or lower.
What the butterfly roll does is it it closes out the call side of the trade and opens it higher.
It cuts our delta in half and increases our theta by 30%.
Hi Steve, I believe the company is reporting earnings this week, does it make sense to get out now at a small profit, or wait a few more days….I think vega is working against us now?
Thanks,
Dale
The intent was not to hold this through earnings, and as tempting as it is to hold and try and get max profits, I’d rather just exit out for breakeven (small loss post commissions).