The VIX opened Monday at a low of 18.95 but as popped back up over 22 as we are now in the middle of two sharp down days in a row. We will manage two of our broken wing butterfly positions today. Let’s start with JPM.
We opened our JPM broken wing butterfly for 1.90 of credit. We can close the entire position for a net debit of around 3.25 and re-open the new position for around 1.45 of credit which should give us small credit to carry forward at this time.
JP Morgan (JPM): 131.16
TRADE ACTION 1: CLOSE the JPM 9 Dec 130 / 135 put and JPM 9 Dec 135 / 136 call broken wing butterfly for a net debit of around 3.25
STC the JPM 9 Dec 130 put
BTC the JPM 9 Dec 135 put
BTC the JPM 9 Dec 135 call
STC the JPM 9 Dec 136 call
TRADE ACTION 2: OPEN the JPM 23 Dec 126 / 127 call and the JPM 23 Dec 126 / 121 put for a net credit of 1.45
STO the JPM 23 Dec 126 call
BTO the JPM 23 Dec 127 call
STO the JPM 23 Dec 126 put
BTO the JPM 23 Dec 121 put
The master portfolio is trading 5 contracts.