*****UPDATE***** 6/29/12 10:34PM

I FORGOT TO UPDATE THIS AS A CLOSED TRADE ON THE BLOG LAST NIGHT. MY APOLOGIES.

I ORIGINALLY POSTED A CLOSE TRADE ALERT ON TWITTER 0N 6/28 AROUND 9:35AM

3DDHedgeInvestments©@creditspread23

$SPX *CLOSE TRADE ALERT* SELL TO CLOSE@21.65 OR AROUND $SPX JUN29 DEBIT $PUT BUTTERFLY 1290-1325… http://wp.me/p2oInD-e1  via @creditspread23

THE LOWERED THE PRICE SOME MORE TO 21.00 LIMIT RIGHT BEFORE 10:00AM AND THE SUPREME COURT RULING.

3DDHedgeInvestments©@creditspread23

@creditspread23 lowered to 21.00 sell for credit on the $SPX close alert. trying to lock in 40% weekly gain here.

ONCE LOWERED TO 21.00 CREDIT, IT FILLED IMMEDIATELY AFTER THE SUPREME COURT RULING ON OBAMACARE.

AFTER IT FILLED, I POSTED THIS STATEMENT ON TWITTER, THAT BECAME OH SO TRUE!

3DDHedgeInvestments©@creditspread23

$SPX butterfly trade,was just too risky to leave open.Never let a profitable trade go bad.Data+charts I see, say big move soon, took40% &ran

WELL THAT BIG MOVE CAME THE NEXT DAY TODAY, FRIDAY JUN29.

HAD WE HELD IT OVERNIGHT AND NOT BEEN PRUDENT TO TAKE THE PROFITS, OUR ENTIRE POSITION WOULD HAVE BEEN WIPED OUT.

SO WHAT WAS OUR PROFIT?

WELL WE HAD A 1X2X1 BUTTERFLY SPREAD THAT WAS BOUGHT AT 15.00 DEBIT AND SOLD FOR 21.00 CREDIT. THIS SELL TO CLOSE WAS  3 DAYS FOR A GAIN OF 40% OR $600 PROFIT OFF $1500 ORIGINALLY AT RISK.

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6/28/12

SELL TO CLOSE 21.65 CREDIT OR AROUND THAT BEFORE THE SUPREME COURT RULING COMES OUT.

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*****UPDATE***** 6/27/2012 9:50AM

THIS MORNING WE NEED TO UP OUR SELL FOR CREDIT TO 25 FROM 20. UNLESS SPX MOVES WILDLY ONE WAY OR ANOTHER, I INTEND TO KEEP THE TRADE OPEN ANOTHER DAY, AND THE SPX IS HUGGING THE 1325 LEVEL NICELY AS WELL.

THE ONLY REASON I HAVE YOU SET UP WITH A GTC SELL TO CLOSE ORDER AT 25, IS THAT THE ORDER IS READY AND CAN ADJUST PRICE ON THE FLY, TO GET OUT IF NEEDED.

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THE PROFIT RANGE IN THIS TRADE IS ANYWHERE BETWEEN 1305 AND 1345 BY FRIDAY JUN29 EXPIRY, WITH BREAKEVEN POINTS 1305 AND 1345 WITH THE PROFITS IN BETWEEN.

MAX PROFIT OF 133% GAIN WILL BE ACHIEVED IF SPX FINISHES THE WEEK AT 1325. THE MAX VALUE IS $15 TURNED INTO $35

NO MORE THAN 12% OF ACCOUNT AT RISK IN THIS TRADE

Order Details

Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 1 SPXQ Put SPXQ Jun 29 2012 1290.00 Put Debit 15.00 Day Order
Leg 2 Sell to Open 2 SPXQ Put SPXQ Jun 29 2012 1325.00 Put
Leg 3 Buy to Open 1 SPXQ Put SPXQ Jun 29 2012 1360.00 Put
Est. Trade Value: $1,500.00
Est. Commission: $7.55
Estimated Fee: $0.17
Funds required for this trade: $1,507.72


Quote SPX   1,313.02   -22.00 Bid 1,312.73 Ask 1,313.30 Volume 0
SPXQ JUN 29 2012 1290.00 PUT
SPXQ JUN 29 2012 1325.00 PUT
SPXQ JUN 29 2012 1360.00 PUT
Bid 5.00 18.20 46.30
Ask 6.60 21.00 50.80
Last 5.80 19.44 28.40
Change 3.40[141.67%] 10.24[111.30%] N/A [N/A]
Volume 676 208 0
Delta -0.25 -0.62 -0.90
Open Int 4,518 16,183 1,079
Desc SPXQ Jun 29 2012 1290.00 Put SPXQ Jun 29 2012 1325.00 Put SPXQ Jun 29 2012 1360.00 Put
Net Quote
Bid
9.30debit
Mid
15.15debit
Ask (natural)
21.00debit

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