Weekly Iron Butterfly Backtest (Part 3)

In this blog series, I’m backtesting a weekly option trade described here.

The second week was flawless.  At inception, the trade looked like this:

P/L on Day 1 ranged from -$114 to +$78.

P/L on Day 2 ranged from +$87 to +$324.

P/L on Day 6 (nothing happened over the weekend or on MLK day) was $570, which is when I closed the trade:

No adjustments were required for this trade.

Margin remained constant at $4,230 for three contracts.  Return on investment was 13.5%.

Thus far, this trade has two wins and zero losses.