Let’s re-set our JPM broken wing butterfly. We opened this trade with a 1.90 credit. We then reset the trade by closing it for a -3.39 debit and re-opening it with a 1.44 credit. That left us with a net 0.05 debit.
Today we can close our open 23 Dec JPM position for a debit of around 1.00 and open a new 6 Jan (23) broken wing butterfly for a credit of around 2.15 … leaving us with around 1.10 of net credit through this adjustment. Even if we close it for 40% to 50% of max profit, we still end up with a 10% to 12% profit on the trade.
TRADE RE-SET
JP Morgan (JPM): 132.73
TRADE CLOSE
TRADE ACTION 1: CLOSE the JPM 23 Dec 121 / 126 put and the JPM 23 Dec 126 / 127 call for a net debit of around 1.00
STC the JPM 23 Dec 121 put
BTC the JPM 23 Dec 126 call
BTC the JPM 23 Dec 126 put
STC the JPM 23 Dec 127 call
TRADE RE-OPEN
TRADE ACTION 2: OPEN the JPM 6 Jan (23) 132 / 127 put and the JPM 6 Jan (23) 132 /133 call for a net credit of around 2.15
STO the JPM 6 Jan (23) 132 call
BTO the JPM 6 Jan (23) 133 call
STO the JPM 6 Jan (23) 132 put
BTO the JPM 6 Jan (23) 127 put
The Master Portfolio is trading 5 contracts