The post to the original trade may be found here.
I took this trade off today for a profit near the close for 3 reasons:
- Priceline (PCLN) has been bumping into resistance the last couple of days and any fast move could have swiftly taken any profits this trade had already made.
- I noticed that, today, this trade was going for a debit when I originally took on a credit.
- Lastly, my short strikes of $640 did not seem to be a solid support level so any fast move past them could seriously hurt the trade. This is because of the significant effect that gamma has on options near the money and near expiration.
So, I ended up putting an order to sell the broken wing butterfly spreads at $0.15. I didn’t think I would get filled but caught a fill near closing time today. This puts the trade at a gain of $60 while risking $455 or a per spread return of 13.18% in 6 days ($60/$455).
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