Weekly Update: Closing March and April M3's

These past two weeks have been exciting for the two positions I have currently been in. I have adjusted and closed both the March and April M3's, so you can find the details below.

March:

Wednesday, March 1: The Vega value of the position went positive after a massive, 26-point rally. To correct this value, I moved five butterflies up to 1370. I also had to add five 1420/1400 verticals to reduce the negative Delta that the moved butterflies had caused. With all of the adjustments for the day, the Greeks are: Delta value of -38, Theta value of 140, and Vega of -157.

The risk profile graph of the position after the adjustment can be seen below:

Friday, March 3: I decided to close the position at 14 DTE because the Gamma value was getting too high and I was profitable for one of the first times in the position. The closing Greeks were: Delta value of -69, Theta value of 293.5, and Vega of -452.7. I closed the position at a $1,396 profit.

The final risk profile graph of the March position can be seen below:

April:

Wednesday, March 8: The Russell 2000 was down eight points and the butterflies were only six points below the current market position. The Delta value of the position was too positive at 20.53, so I had to move seven butterflies up to 1390 in order to offset the Delta. The position now has a Delta value of 2.34, a Theta value of 112.1, and a Vega value of -656.7.

The risk profile graph of the position after the adjustment can be seen below:

Friday, March 10: The Russell 2000 was finally up a few points after being down all week. I decided to close my position for a $2,567 profit. The final Greeks were: Delta value of -1, Theta value of 131, and Vega value of -745.

The final risk profile graph of the position can be seen below:














Stay tuned as I put on my May position in the coming weeks!