I’m not much of a regular old butterfly guy (other than iron butterflies for earnings) so maybe I did something wrong. The SVXY put butterfly that @vxxkelly and I were discussing as a #Hedge didn’t do much during the selloff Friday. I monitored it as SVXY dropped all the way down and then all the way back up and the thing was never profitable at all. Was it because it was out in Jan? Do these types of trades only work on much shorter time frames? Did I (quite possibly) screw something up?
Here was the trade:
SVXY JAN 19 2018 110.0/105.0/97.5 Put Butterfly @ .22 credit
Bought 5 110 puts
Sold 10 105 puts
Bought 5 97.5 puts