Weekly Iron Butterfly Backtest (Part 8)

In this blog series, I’m backtesting the weekly option trade described here.

Week 7’s trade begins like this:

The trade closed just before the market sold off markedly:

P/L on Day 1 ranged from -$399 to -$114.

P/L on Day 2 ranged from -$75 to +$318.

Trade closed on Day 5 (nothing happened over the weekend) for a profit of $444, which is 10.1% on $4,419 initial margin.

In backtesting, this trade has now won four times in seven weeks.