/ES (E-Mini S&P 500 Index Futures) Broken Wing Butterfly: 2/2/2015

BOT +2 BUTTERFLY /ESH5 1/50 MAR 15 /ESH5 1980/2000/2030 CALL @-3.75
Bearish bias
Order

Note: Commissions not included
Max. Profit = $2,375
Max Loss = $625.00
DTE = 45
BE = 2,024.00
POP =~ 63%
Max ROC  = 2,375/625 =~ 380% – this is only if the underlying closes exactly at 2000 (short strike) upon expiration.
Looking to buy the embedded short CALL vertical (-2030/+2020) for around 3.00.  Buying this for anything lower than 3.75 (credit collected for the trade) would turn the resulting regular butterfly (2000/2020/2050) into a risk free trade.

P&L diagram
Chart

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One thought on “/ES (E-Mini S&P 500 Index Futures) Broken Wing Butterfly: 2/2/2015

  1. Pingback: /6E Iron Condor partially closed, /ES Broken Wing Butterfly closing trade, new /CL & /ZB Short Strangles | Gen ROC

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