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.

TRADE RE-SET

JP Morgan (JPM): 131.16

TRADE CLOSE

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 RE-OPEN

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.