Over the weekend, because of the continuous bullish movement of the market, I had to adjust my position. The main reason was because my Vega value became positive, so in order to change it back to negative, I moved the butterfly from 1010 to 1040. The position I had to remove I took a loss. At the time, I was down about $950 but now the position is down about $1,367. While this may seem like a large loss after only a few days of implementing the position, I am not worried. The market has been bullish for the past two weeks and has risen 16% in only 16 days, a trend that is incredible. My position is ready for the market to retrace a percent or two but if it opens 3-4% down tomorrow, I may need to adjust the position again.
Currently, the Greeks are all within their limits. The Delta value is -25.8, the Theta value is 48.8 (which will continue to build) and the Vega value is -55.7, all of which as suitable for the position.
Below is a picture of the current position and t + 0 line. I hope you all are enjoying this blog and don't forget to leave any questions or concerns in the comments.
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