Paper Trade 1 (Week 1) (Part 1)
Posted by Mark on August 1, 2014 at 06:36 | Last modified: February 4, 2015 10:49I 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.
Comments (5)
[…] first trade worked out […]
Hi Mark,
I stumbled across your blog by accident. I’m working my way through from the beginning. There are a number of broken links. For example, on the following page: http://www.optionfanatic.com/page/22/
The link at the top of the page, referring to “consecutive-directional-close-part-1/”, is broken.
Do you want me to report the broken links in a comment? Some of these are from 2012, and I’m not sure if you still monitor old comments.
I notice that your last post was in August 2014. Is your blog dead?
That link has been fixed. I think at some point I changed the titles of some blog posts and I forgot to edit the links. If you see others then I’ll fix those too.
Today, this blog lives. 🙂
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