Adjust Trade Alert: SPY April Butterfly Hedge #2
Thu, Apr 12, 2012 | Frank
We’re closing the bearish side of this position and selling an out-of-the-money call vertical, with the following iron-condor order:
Day limit order
Buy to open 2 SPY Apr 144 calls
Sell to open 2 SPY Apr 142 calls
Sell to close 2 SPY Apr 137 puts
Buy to close 2 SPY Apr 133 puts
for a net credit of $0.59 or better.
Note that the 2 contracts per leg specified above represent the number of contracts we’re currently long at the 137 strike. This trade will adjust BF #2 into an April 129/133/142/144 “broken wing” iron condor.
I’ll include an analysis in the Weekly Portfolio Update after market close. In the meantime, here’s a snapshot of our new risk profile at the time our orders were filled:
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