Our SPDR Financial ETF (XLF) broken wing butterfly trade is sitting right at the break-even point. With today’s fed announcement being a binary event (and who knows which way the market will react) let’s close it and then we can re-open after the event.
This will be the first losing trade for XLF but not by much and we will take in a credit when we re-open the next one. We will probably structure that one ITM to give us more protection to the downside.
At current prices we should be able to close this for about 1.15-1.20.
SPDR Financial ETF (XLF): 32.93
TRADE ACTION: CLOSE the XLF 23 Sep 29/34 put spread and the 34/34.5 call spread for a debit of around 1.18
BTC the XLF 23 Sep 34 put
STC the XLF 23 Sep 29 put
BTC the XLF 23 Sep 34 call
STC the XLF 23 Sep 34.5 call
Work the order, XLF is a tight market. Provided we can get out around 1.18 we had a 1.11 credit after our adjustment. This will result in a loss of around 0.07-0.08 per contract which we should be able to make up with the next trade.
We may re-set later today after the announcement or wait until tomorrow depending on the market reaction.