RUT – Broken Wing (Skip Strike) Butterfly


Click here for reference price chart, PL graph, IV chart.
– A potential bullish Gartley in the making.  Looking for price reversal around the 785 level.
– Up channel in place .
Looking to trade this via a skip strike butterfly with a bullish bias.
Long 10 Apr 790 puts
Short 20 Apr 785 puts
Long 10 Apr 775 puts
Credit = 1.05
BE = 778.86 (profitable above this level)
Max loss = 3900
Max profit =~ 6,000 (at the short strike)
Also placing a GTC order to buy back the embedded vertical spread for a 0.50c debit.   If the trade unfolds favorably & this order gets executed, then we would be left with a risk free position.
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This entry was posted in Broken Wing Butterfly, Gartley, Harmonic Pattern, Indices, Options, RUT. Bookmark the permalink.

One Response to RUT – Broken Wing (Skip Strike) Butterfly

  1. Pingback: Updates on RUT & USDCAD Trades | One618 Trading Blog

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