/GC (Gold Futures) Broken Wing Butterfly: 2/10/2015

BOT +1 BUTTERFLY /GCJ5 1/100 APR 15 /OGJ5 1215/1210/1200 PUT @-1.40
Bullish bias

Note: Commissions not included
Max. Profit = $640.00
Max Loss = $360.00
DTE = 44
BE = 1203.70
POP =~ 73%
Max ROC  = 640/360 =~ 178% – this is only if the underlying closes exactly at 1,210 (short strike) upon expiration.
Buying back the embedded short PUT vertical (-1205/+1200) for anything lower than 1.40 (credit collected for the trade) would turn the resulting regular butterfly (1215/1210/1205) into a risk free trade.

P&L diagram


One thought on “/GC (Gold Futures) Broken Wing Butterfly: 2/10/2015

  1. Pingback: /GC BWB, /CL & /ZB Short Strangles, /6E remaining call vertical, /ZS IC closing trades, New /CL, /ZB Short Strangles | Gen ROC

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