A Batman Butterfly option setup are two Butterflys placed during the same trade going opposite directions. So my Call butterfly center position pins at 5120 and my Put butterfly center position pins at 5025! Both expire today (Thursday). Both cost $200. Right now the S&P 500 is down to around 5035 so the Put butterfly currently has $200 net profit and the Call butterfly has $43 net profit. The max potential profit on these contracts are around $1700 each. IF say the market closes at the 5025 strike then the Put Butterfly will expire at the $1700 net profit! The call option will expire worthless. For a final net profit of $1500! Basically a 4x gain in one trading session! For me, I like this strategy better than placing stops. My stops always seem to get hit just before my position reverses and I’m stuck watching others feast on my account. Here, I’ve defined my risk because $200 is my max potential loss. So instead of managing risk during the trade I’m managing profits! Much more fun and exciting! So like a tetherball, as the day progresses if the SPX continues to get closer to the 5025 strike price of the center Put butterfly the value continues to climb toward the $1700 max. Most likely I’ll probably close the trade once I’ve doubled my $400 cost of the total trade. The odds on the SPX dropping down to maybe 5000 then recovering back to 5025 at the close are fairly slim.
Bulls and Bears make money, Hogs get slaughtered! Kenny Rogers was right, you got to know when to hold’em, know when to fold’em! Should be a fun day chasing butterflys! LOL

Were you long META?

The question marks are supposed to be applause emoji. :)