Paper Trade 1 (Week 1) (Part 1)

I apologize for the generic title of this blog post! This corresponds to a RUT weekly iron butterfly trade.

The trading plan is as follows:

–Place trade on Tues-Thurs when Avg IV spikes roughly 2% or more
–Sell 30-point call credit spread ATM
–Sell 40-point put credit spread ATM
–Close trade if profit reaches 10%
–Close trade if loss reaches 15%

I will include transaction fees of $11/contract.

On 7/31/14, I sold 10*1150/1120/1120/1080 IBFs. MR is $18,730. Credit received was $21.71.

For T+1, max loss points (-$2800) are roughly 1098 and 1143.

I will monitor this way every day to see if max loss points are hit.