250% and 321% in Three Hours

Our daily expiration trades on SPX and XSP aren’t always winners. 

But when we win, we win BIG. 

On Friday August 22nd, we hit a wild one. 

Traders bought the SPX August 22, 2022 $4150-$4140-$4130 Put Butterfly for $1.22 at 1:02 p.m.

They sold half at $2.60 at 1:52PM—> 113% gain,

Sold 25% at $3.90 at 3:18PM—> 220% gain,

And the trade expired at $7.99—> 555%

For a weighted gain of 250% in just under 3 hours.

But we weren’t just trading SPX. We were also trading a cheaper version of this – the XSP – and we made even more…

Traders bought the XSP August 22, 2022 $415-$414-$413 Put Butterfly for $0.13 at 1:11 p.m.

Traders sold half at $0.28 at 2:04PM—> 115%

Then sold 25% at $0.83 at 3:35PM—> 538%

And it expired at $0.80—> 515%

For a massive weighted gain of 321% in just under 3 hours – and you only needed $13 to get in this trade.

Here’s what makes these trades even BETTER besides the profit potential…

SPX and XSP both settle in CASH – which means, at expiration, you aren’t assigned a stock – you get cash in your account instead. 

What could be better than that?

I trade SPX and XSP as same-day expiration butterfly trades, which are a bit more complicated than my typical calls and puts, so take a look at this video where I deep-dive into butterflies and how traders can use them to profit. 

Butterflies 101:

I will be unavailable for live shows next week, but I’d love to hear your questions about butterflies or other options trades RIGHT HERE.

Until next time,

Mark Sebastian

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