Adjust Trade Alert: SPY October Butterfly Hedge (Adjustment #2)
Wed, Oct 12, 2011 | Frank
As traders and investors continue to accumulate shares this afternoon, SPY is within about $0.50 of our current upside risk-management price threshold. In preparation for possibly opening an upside hedge in the last 45 minutes or so of the session, we’re freeing up margin by closing the put side of this position, as follows:
Day limit order
Buy to close 1 SPY Oct 103 put
Sell to close 1 SPY Oct 93 put
for a net debit of $0.04 or better.
Note that the 1 contract per leg specified above represents our entire position in the October 93/103 put vertical. This leaves us short the Oct 125/127 call vertical spread.
Tags: adjustment, butterfly, spy
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