winstonthink 9:17 am on Tuesday, September 15, 2020

PYPL UNH BWB

$PYPL BTO Oct 02, 190 / 185 / 175 Broken Wing Put Butterfly for 0.69 credit.

Breakeven on the downside at exp $179. No upside risk (keep credit).

$UNH BTO Oct 02, 315 / 310 / 300 Broken Wing Put Butterfly for 1.01 credit.

Breakeven on the downside at exp $304. No upside risk (keep credit).

winstonthink 5:32 am on Saturday, October 3, 2020

PYPL BWB finished at $190.90 so get to keep the 0.69 credit, except if you did what I did and adjust too early and screw up a decent setup by getting clever (the details are not instructive) so now I have work to do to regain the profit in the trade.

UNH BWB finished at $311.56.
Sold the 315 / 310 long put spread early for $2.85 when UNH started moving up. Plus a few other adjustments to gain additional credits which were not so successful.

Long Story Short – learnt a lot about when I should / should not adjust.
Let the long spread side of the BWB go deep ITM, then roll the short side up and out / down and out (depending on whether Call or Put BWB).
If at expiration the long side expires 100% ITM, then add on the complimentary short call / put spread to the previous step.

The adjustments to the ROKU BWB shows this in practice. Eventually I will add a short put spread after the Oct 16 expiration.

Definitely a work in progress – but encouraging nonetheless.

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