Weekly Trade Summary: Apr 16 - Apr 22

Last week I expired one core trade and one deep out of the money hedge, and opened two new butterflies (June 23 and June 30 expirations).  The new trades are shown below:

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The entries and adjustments for the trades that expired last week are listed below

Trade Entry: Jan 3 - deep out of the money (DOTM) BWB on the Apr 21 exp (post)
Adjustment: Feb 13 - moved 4 of the 10 2180 puts to the 2170 strike for a $0.80 credit (post)
Expired: Apr 22 - small loss

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Trade Entry: Feb 8 - BWB on the Apr 21 exp (post)
Expired: Apr 22 - small loss

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I currently have 6 open trades, with expirations in May (2), June (3), and July (1):

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Total defined risk for these trades is currently at 36.8% of the account net liquidation value. This risk is broken down into the following groups:

• 7.8% of net liq - DOTM BWB - hedges
• 29% of net liq - core BWB

20 trades have been closed this year...12 wins and 8 losses. Return on the account for the year is at 2.84%.  Total win rate is at 60%.  The win rate on the core trades is at 67% and again down at the low end of the expected range. Of the 6 open trades, 4 are core and 3 of the core are currently up money.

I have run 10, 10 year backtests on my deep out of the money broken wing butterfly hedges.  While they can work as a decent hedge if timed properly, over time they appear to lose money using my trading approach.  I will phase out this style of hedge in the next few weeks.


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