THE EXIT OF THIS TRADE WAS TWEETED ON THE RELEVANT EXPIRY DAY, WE EXITED THE CALL SIDE SHORT 250 AT .05 DEBIT IN THE 1ST EXIT TRANSACTION. SHORTLY AFTERWARDS WE DECIDED TO EXIT THE SHORT PUT SIDE 250 AT 2.00 DEBIT.

THE TOTAL TAKE ON THE TIMELY TWEETED TRADE WAS 3.75 CREDIT -2.05 BUY TO CLOSE = 1.70 PROFIT PER LOT.

WE HAD 5 LOTS WHICH EQUALED 170 PROFIT PER LOT X 5 OR $850 PROFIT

WEEKLY PROFIT WAS 850 PROFIT / MAX 625 AT RISK = 136% RETURN

*************************************************************************************************************************************************************************************************************************************

WE DIDNT BLOG THIS IRON BUTTERFLY TRADE ON 12/11 DUE TO IT BEING AN EXPERIMENTAL AMZN 250 DEC14 PIN PLAY. WE DID HOWEVER RELEASE IT ON THE TWITTER STREAM, FOLLOW ME FOR ANY TRADES GOING FORTH @CREDITSPREAD23.

SO FAR 250 PIN SEEMS AN EXTREMELY GOOD SHOT RIGHT NOW, AND WATCHING IT LIKE A HAWK TODAY.

OUR MAX LOSS ON THE SPREAD IF LEFT UNADJUSTED WOULD HAVE BEEN 5 WIDE- 3.75 CREDIT = 1.25 MAX LOSS

HAD OR IF THE POSITION GETS INTO TROUBLE, WE WILL ROLL ADJUST THE LOSING LEG, AND LET THE OTHER EXPIRE.

THIS WAS A DECENT THETA DECAY OPPORTUNITY DUE TO AMZN NOTORIOUS PIN ACTION OVER TIME.

YOU CAN FOLLOW FOR FREE ITS PIN PREDICTIONS HERE http://www.optionpain.com/WeeklyPain/Weekly-Pain.php

THAT IS A SUBSCRIPTION SERVICE, BUT THEY GIVE AMZN WEEKLY PINS ALL THE TIME AS AN ENTICEMENT TO JOIN.

JUST MAKE SURE YOU USE THE DROPDOWN MENU AND PUT ON THE APPROPRIATE WEEK, ALTHOUGH THE WEEK OF DEC14 NO LONGER SHOWS AS TODAY IS THE DAY OF EXPIRY.

THE TARGET AREA OF PROFIT ON THIS IS AS FOLLOWS

BREAKEVEN POINTS WERE 246.25 AND 253.75

PROFIT EXISTS ANYWHERE BETWEEN THOSE TWO POINTS.

IF AMZN PINS AT 250 IT WILL YIELD 3.75 FULL CREDIT PROFIT AND BASICALLY A 300% PROFIT ON RISK PUT FORTH OF 1.25 PER SPREAD LOT.

I DID A COPY AND PASTE FROM MY BROKER TO SHOW THE PREVIOUS TRANSACTION. THE SMALLER CHANGE AMOUNTS ARE FEES AND COMMISSIONS.

P.S. WHERE DOES THE PLAY STAND AS OF WRITING THIS AT 10:38 AM est 12/14/12

ITS CREDIT RECEIVED WAS 3.75 AND IF WERE TO BUY TO CLOSE RIGHT NOW IT WOULD COST 1.82 TO CLOSE. 😉

12/11/12     Bought   to Open 5 AMZN Call

Amzn Dec 14 2012 255.00 Call
AMZN Dec 14 2012 255.00 Call $1.55 $0.75 $0.16 -$775.91
12/11/12     Bought   to Open 5 AMZN Put

Amzn Dec 14 2012 245.00 Put
AMZN Dec 14 2012 245.00 Put $1.12 $9.70 $0.16 -$569.86
12/11/12     Sold   to Open -5 AMZN Call

Amzn Dec 14 2012 250.00 Call
AMZN Dec 14 2012 250.00 Call $3.83 $0.75 $0.22 $1,914.03
12/11/12     Sold   to Open -5 AMZN Put

Amzn Dec 14 2012 250.00 Put
AMZN Dec 14 2012 250.00 Put $2.59 $0.75 $0.20 $1,294.05
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