Two weeks ago, I entered an iron butterfly spread on OptionsXpress (OXPS) with the middle strike at $30. As of yesterday, I thought the best I could muster will be to breakeven on this one coz OXPS was trading at $28 and only a few trading days remain before the November options expire.
Today, the entire market surged due to some comments made by the Fed Officials, according to the Associated Press. Well, I have no idea what they said – and neither do I care actually - but the surge brought OXPS to $29.50 in the afterhours trading.
So tomorrow, I am going to take this opportunity to exit this otherwise losing trade with a profit. Hopefully, OXPS opens at $30. I am not going to hold this till expiry even though its just a few more days because I think the rally may be sustainable and push the price over $31.50 and turn my iron butterfly into a losing trade again! So, nope! Not taking any more chances here!
