Nice bounce back up - Happy that I did not make any adjustment, other then peeling off, on the original butterfly. The alternative would have been taking off one 410-450.
Follow me in what would have been the result. A 5-10-5 would have changed in a 4-8-4 plus a credit spread on the 450-490. That would have changed the original butterfly from a $5000 trade into a 5000 + 4000 as margin for the credit spread trade - total investment 9000.-.
In the bounce back - especially if we move further up the credit spread would be come a liability; needing an adjustment by itself.
For now the trade - looks pretty good.
Very nicely done! Deltas look great as well.
Posted by: Bill | February 24, 2009 at 09:41 PM