Butterfly Adjustments In A Market Moving Up Fast


Nobody likes getting into a trade only to have market rip against you, but sometimes it happens.  Those of you who follow me on Twitter or keep an eye on my results know that I had a touch of unlucky entry timing for the July CIB.  The trade was opened with 55 DTE on Friday, May 20th, right before a big up move in RUT from 1100 to 1140 over the next 3 days.  The daily chart below puts the entry and move in perspective.  The shaded lines show the expiration break even points of the position.


In an effort to move out of the way of a fast market, I made several rolling adjustments in the first few days of the trade.  The video below walks through the butterfly trade adjustments and rolls.