Alert: Open SPX Dragonfly
Ticker: SPX
Price: $4360
Date: 6/23/23 12:27 PM
Underlying: S&P 500 Index Fund
Est. Net Debit/Credit: $3150
Master Portfolio Contracts: 10
NOTE:
Due to to the low VIX despite higher volatility it is very hard to get decent credits without having too much risk to 1 side. So this trade will be placed for a debit instead of a credit. This flattens the T+0 line to the downside and we can adjust the trade to either side by keeping the broken wing butterfly to 10 points wide we have the potential to adjust it to the downside as well as upside if needed.
We plan on adding a calendar or diagonal adjustment early next week if the market moves up or stays flat.
Because the spread is only 10 wide we can increase to 10 contracts for 20k margin.
Trade Detail:
TRADE ACTION: Open SPX Dragonfly for a DEBIT of around 3.15 – 3.45 (test filled 1 contract for 3.30)
BTO (10) the SPX 7 JUL 4350 put
STO (20) the SPX 7 JUL 4310 put
BTO (10) the SPX 7 JUL 4250 put
Margin Required: $20,000
TRADE POSITION AFTER DETAIL:
+10 the SPX 7 JUL 4350 put
-20 the SPX 7 JUL 4310 put
+10 the SPX 7 JUL 4250 put