Weekly Iron Butterfly Backtest (Part 13)

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

Week 12′s trade begins like this:

The market rallied during the day to force an adjustment near the close:

A couple short bursts to the downside over the next few days were not enough to hit the profit target.  On Wednesday of expiration week, max loss was hit:

P/L on Day 1 ranged from -$480 to -$141 with an adjusted margin requirement of $5,250.

P/L on Day 2 ranged from -$624 to -$492.

P/L on Day 5 (nothing happened over the weekend) ranged from -$507 to -$312.

P/L on Day 6 ranged from -$243 to +$24.

Trade closed on Day 7 for a loss of $891, which is -17.0% on max margin.

The trade is 7-5 in backtesting thus far.