![\"spx-income-april\"](\"http:\/\/trades.investingwithoptions.com\/files\/2014\/02\/spx-income-april.png\")
<\/a><\/p>\n\n
Update: March 21st, 2014<\/h2>\n
We’ve got a 30 point move now, so what we are going to do is roll the call spread of this butterfly higher.<\/p>\n
So it will, in effect, turn from an iron butterfly to an iron condor.<\/p>\n
This can be executed through a “butterfly roll.”<\/p>\n
Buy Apr 1850\/1900\/1950 Call butterfly for 20.70 or better.<\/p>\n
If you aren’t getting a fill, split the trade up into the 1850\/1900 call spread buy and the 1900\/1950 call spread sale.<\/p>\n
<\/p>\n
If we see a move to 1910 we will hedge off some upside risk, either by rolling the call spread higher once again, or buying some upside butterflies to reduce risk.<\/p>\n
Looking to be in this trade for 2 more weeks.<\/p>\n
\n
Update: April 7th, 2014<\/h2>\n
Because the IV in the options was so low, we had to wait a while for the profits to materialize.<\/p>\n
The trade is currently sitting at 18% return on risk, which is close enough to my target 20%.<\/p>\n
Close out SPX Iron Condor (it’s an iron condor now because we started with an iron butterfly and rolled the call side higher.)<\/p>\n
<\/p>\n
\n
Margin and P\/L<\/p>\n
Iron Butterfly
\nSpread Width: 5000
\nPut Spread Credit: 15.00
\nCall Spread Credit: 22.25
\nMargin: 1,275<\/p>\n
Butterfly Roll:
\nDebit: 20.70
\nMargin: 3345<\/p>\n
Profit: 600<\/p>\n","protected":false},"excerpt":{"rendered":"
Going to put some money to work in April opex. This is a tiered play, so start with 1\/3 size and we will add on as the market moves. Here’s the first trade: SPX Iron Butterfly Sell to open Apr 1800\/1850 bull put spread @ 15.00 Sell to open Apr 1850\/1900 bear call spread @ […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":2,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":1,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[29,27],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9368"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=9368"}],"version-history":[{"count":4,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9368\/revisions"}],"predecessor-version":[{"id":10072,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9368\/revisions\/10072"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=9368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=9368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=9368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}