Jeff 9:08 am on Wednesday, January 30, 2019
Tags: Earnings ( 3,108 ), IronButterfly ( 141 )

NOW iron butterfly

Sold to open $NOW Feb 1st 185/190/195 iron butterflys for 4.35. Max risk .65. As I reported below, this one has been more of a minor mover in recent years, so seeing if it can maintain its calm. If not, max loss is tolerable.

Ramie 9:55 am on Wednesday, January 30, 2019

Followed for 4.35. Thanks Jeff.
thomberg1201 10:43 am on Wednesday, January 30, 2019

I followed for 4.35 as well, thanks Jeff.
mortlightman 11:12 am on Wednesday, January 30, 2019

Followed but a slight change moved it up 1 strike
187.5/192.5/197.5 4.36
- mortlightman 7:00 am on Thursday, January 31, 2019
  
  Closed 5.05 this AM
rknight52 1:01 pm on Wednesday, January 30, 2019

Chose the iron condor route. 200/195/190/185 for 3.74
matt0311 6:24 am on Thursday, January 31, 2019

After this big jump up, the BF isn’t working. Risk was limited and trade may not need any action, but how would you try to repair and/or salvage this kind of a trade?
- Jeff 12:52 pm on Thursday, January 31, 2019
  
  I don’t. The point is low probability, low risk. When these trades hit they pay very well but when they miss, the loss is minor.
  
  But those that want to try can roll the call spread to a later expiration and wait for a pullback. You could also sell the long call for a profit, and take assignment of the short stock, then wait for pullback.