Today, there was a huge drop in the Russell 2000 underlying index. Beginning at 1,269 when it first opened (last close was at 1,279) it crashed another 20 points and closed today at 1,246. Because of such a delcline, the volatility of the index was up about 25% causing my position to suffer from my negative Vega. Luckily, before I put my position on for the August trade, I noticed a steadily rising market and I had a feeling it was going to fall soon. Knowing this, I placed my butterfly at 1,250 rather than 1,260 to have extra support in the back, which is crucial.
When I checked the position, I saw that all my Greeks were within limit and was only down $340. When I saw the risk profile, I noticed that my t + 0 line was flatter then I thought it would be. I have attached a picture of it below.
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