Symbols traded: SPY short Iron Fly (1DTE)
I’ve entered a short Iron Fly position on SPY, one day prior to expiration, and exited on February 7, expiration day. The call options within the position were in the money and therefore unprofitable after the stock price rose overnight. I exited the calls early in the session and left the put options, which were out of the money, to expire without value.
SPY short Iron Fly
| LOT: | 7 | ENTRY DATE: | 2/6/2024 |
| EXIT DATE: | 2/7/2024 | ||
| DAYS HELD: | 1 |
Entry and Exit
| METRIC | CREDIT | DEBIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 1.95 | $ 2.70 | $ (0.75) | -27.8% | -10083% |
| METRIC | ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Stock price | $ 493.22 | $ 498.10 | $ (4.88) | 0.99% | 361% |
| Impllied Volatility Rate | 10.8 | 8.6 | -2.2 | ||
| Days to expiration | 1 | 0 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Calls | ||||||
| Long | 496.00 | 78.0% | 20 | $ (0.38) | $ 1.85 | $ 1.47 |
| Break-even | 494.95 | 62.5% | 36.5 | |||
| Short | 493.00 | 47.0% | 53 | $ 1.48 | $ (4.55) | $ (3.07) |
| Puts | ||||||
| Short | 493.00 | 47.0% | 54 | $ 1.19 | $ – | $ 1.19 |
| Break-even | 491.95 | 65.5% | 35.5 | |||
| Long | 490.00 | 84.0% | 17 | $ (0.34) | $ – | $ (0.34) |
| ====== | ||||||
| ` | NET TOTAL: | $ (0.75) |
Risk and Reward
| Per contract: | |
| Reward | 195.00 |
| Risk | 105.00 |
| R/R Ratio (n:1) | 0.5 |
By Tim Bovee, Portland, Oregon, February 6, 7, 2024
Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
Tim Bovee, Private Trader 
[…] And I entered a short Iron Fly position on SPY a day before expiration, with the intent of exiting on Wednesday, February 7. I’ve posted a trade analysis. […]
LikeLike
[…] a loss and will allow the out-of-the-money options to expire with zero value. I’ll update the trade analysis when the process is […]
LikeLike
[…] calls in the position and allowed the out-of-the-money puts to expire without value. I’ve updated the trade analysis with full […]
LikeLike