Small Account Trader PRO Alert: JPM Trade Adjstment

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