Our XLF broken wing butterfly is sitting almost dead center of the profit and loss graph tent … right at max profit. However, we have 9 days to go to expiration to collect that profit and a Fed meeting with rate hike this afternoon and the potential for volatile market reaction.
We set up our recent XLF broken wing butterfly so we could take advantage of the time decay and exit early from this trade. Let’s close it. We collected a 1.39 of credit at the open and we can close it paying a net debit of 0.85 and 0.90. That will leave us with a net credit of 0.52 or $52 per contract and a $260 profit on 5 contracts.
SPDR Financial ETF (XLF): 34.08
TRADE ACTION: CLOSE the XLF 11 Nov 29 / 34 put and 11 Nov 34 / 34.50 call broken wing butterfly for a net debit of around 0.87
STC the XLF 11 Nov 29 put
BTC the XLF 11 Nov 34 put
BTC the XLF 11 Nov 34 call
STC the XLF 11 Nov 34.50 call