2017 Feb SPX Butterfly

Not too long ago, I closed my 2017 Jan SPX Put butterfly with a profit of $720. Several days after my previous position, I initiated 2017 Feb SPX Put butterfly. As I said in my 2016 reflection, put butterfly is my bread-and-butter option trading strategy, which usually brings me consistent income every month.

On 1/4, I initiated my SPX butterfly after a small rally, which normally increases profitability. As you can see from the left red arrow on the figure below.

The cost of butterfly was $1065, which was slightly higher than usually. It was probably due to low volatility, since after the presidential campaign, the stock market has rallied quite a bit.

The stock market after I initiated my position went sideways, which also helped my position. On Jan 19, the stock market went down since many investors took profit before inauguration. I decided to close my position, as I wanted to protect this quick profit of $400 in only 15 days.

Looking back, it was a smart decision, as the stock market went up quite a bit since then.


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