Quick note: On March 10, I took out small insurance policy through SPY April 114/109/104 put butterfly. Here is the link: SPY Butterfly. As market continues to rip higher, I am making the following adjustment by increasing my exposure to potential downside.
- Sell to close April $104 puts
- Buy to close April $109 puts
This leaves me with straight April $114 puts and substantially increases the exposure to the downside if the market falls apart. If we get a sell-off and VIX goes back up, I will re-establish the exact same butterfly.
Good luck!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
Visitor Locations
