Adjustment of ESTX50 Sep 15 Butterfly

During the huge drop yesterday, I have sold the second leg of the 3,350 butterfly. The short put with the strike same strike at 3,350 points like the call that I have sold last week earned a premium of 1,631 EUR. Total premium earned increased to 6,921 EUR.

Currently, the broken wing butterfly consists of two September straddles at 3,350 and 3,550 points and one long put 3,100 points with expiry in July.

The lower break even point is at 3,103 points and the upper break even is on 3,796 points. Maximum profit of 4,921 EUR would be earned if the EuroStoxx50 closes between 3,350 and 3,550 points on September expiration.

Upcoming adjustments are to open two long put positions for August as crash insurance. If the ESTX50 drops below 3,250 another call will be sold at the strike of 3,150 to extend the profit range. On the upside we do have plenty of buffer at the moment.

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