Weekly Iron Butterfly Backtest (Part 23)

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

Week 22′s trade begins with this:

After threatening the upside adjustment point, the market dropped past the downside adjustment point the very next day.  No adjustment was made with the trade in profit.

Early Monday morning, the profit target was hit:

P/L ranged from -$144 to -$351 on Day 1.

P/L ranged from +288 to +$24 on Day 2.

The trade was closed on Day 5 (nothing happened over the weekend) for a profit of $579 on $3,405, which is 17.0%.

The trade has now won on back-to-back weeks improving its win-loss record to 12-10.