Symbols traded: SPY, short Iron Fly (1DTE)
I entered a short Iron Fly position on SPY with the intention of exiting the next day, which is expiration day. Overnight the S&P 500 fell sharply, moving the trade into losing territory.
Just after the opening bell I sold the short bull put spread that was the in-the-money half of the Iron Fly, a move that mitigated the loss, since the price kept falling during the session. I allowed the out-of-the-money bear call spread, the remaining half of the Iron Fly, to expire with no value.
This update assumes the calls will remain out of the money to during the final hour of the session, which has not yet ended. If that proves not to be the case, I’ll post a revision.
SPY short Iron Fly
| LOT: | 10 | ENTRY DATE: | 3/4/2024 | ||
| MANAGEMENT: | 3/5/2024 | EXPIRATION: | 3/5/2024 | ||
| DAYS HELD: | 1 |
Entry and Exit
| METRIC | ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 1.62 | $ (2.11) | $ (0.49) | -30.2% | -10980% |
| Stock price | $ 512.73 | $ 510.19 | $ (2.54) | -0.5% | -181% |
| Impllied Volatility Rate | 11.5 | 14.9 | 3.4 | ||
| Days to expiration | 1 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Calls | ||||||
| Long | 515.00 | 79.0% | 21 | $ (0.33) | $ – | $ (0.33) |
| Break-even | 514.62 | 65.5% | 33.5 | |||
| Short | 513.00 | 52.0% | 46 | $ 1.01 | $ – | $ 1.01 |
| Puts | ||||||
| Short | 513.00 | 47.0% | 54 | $ 1.21 | $ (2.91) | $ (1.70) |
| Break-even | 511.62 | 65.0% | 35.5 | |||
| Long | 510.00 | 83.0% | 17 | $ (0.27) | $ 0.80 | $ 0.53 |
| ====== | ||||||
| ` | NET TOTAL: | $ (0.49) |
Risk and Reward
| Per contract: | |
| Reward | 162.00 |
| Risk | 88.00 |
| R/R Ratio (n:1) | 0.5 |
By Tim Bovee, Portland, Oregon, March 4-5, 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 
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