Taking advantage of a little IV in the Russell with a Put BWB.
Trade Setup:
-1 IWM Mar 17 134/136/136/137 Put Butterfly @ 0.18
DTE: 31 Max Win: $118 Max Loss: $82 Breakeven: $134.82
Trade Management: I will look to take 50% off this trade if we come down to $136.00 in the upcoming cycle, so around $59. If the market decides to crash, I am comfortable with the risk in the trade. I would likely take of the winning put side of this strategy and roll out the short put side for more premium, if that was the case.
Because of the structure of this trade, you will see that this trade has $0 upside risk and will in fact, end up with a max of $18 win if the options expire worthless. We will see if we get there.
Green is profit zone; vertical bar is expiration.
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Closed trade for small profit on 3/15 (I'm late on last week's expiration) for $4 credit. $4 credit alone with $18 credit to open trade leaves 22/contract profit.