Risk-averse members who want to stop out of our IBM Supplemental Trades this afternoon may consider the following butterfly order:
Day limit order
Sell 1 IBM Mar 160 put
Buy 2 IBM Mar 155 puts
Sell 1 IBM Mar 150 put
for a net credit of $2.28 or better.
The number of contracts specified above represents our entire position in IBM March Butterfly Hedge #3. Also note, again, that as a Supplemental Trade, this order will not be autotraded.
NOTE: Supplemental Trades are optional and primarily intended for more experienced/risk-tolerant subscribers. They are not autotraded, and have no bearing on our core newsletter portfolio; however, we follow up by posting any additional entry or adjustment trades that the Calendar Options risk-management approach may call for. Also note that it’s important for anyone who chooses to participate in Supplemental Trades for a given cycle to follow all Supplemental Trades in that cycle if they wish to match our risk-management profile.