Weekly Iron Butterfly Backtest (Part 3)
Posted by Mark on June 21, 2013 at 07:09 | Last modified: August 1, 2013 07:40In this blog series, I’m backtesting a weekly option trade described here.
The second week was flawless. At inception, the trade looked like this:
P/L on Day 1 ranged from -$114 to +$78.
P/L on Day 2 ranged from +$87 to +$324.
P/L on Day 6 (nothing happened over the weekend or on MLK day) was $570, which is when I closed the trade:
No adjustments were required for this trade.
Margin remained constant at $4,230 for three contracts. Return on investment was 13.5%.
Thus far, this trade has two wins and zero losses.
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