The Trade
Trader executed the September $55/$60/$65 call butterfly spread 5,000x for a debit of $.39, $195,000 total. Maximum risk is equal to the total debit. Profit potential is limited to $2,305,000.
Currently, the position is positive gamma as it is looking for a big move to help shares settle slightly above $55 and below $65. Moreover, passage of time, or theta, will lower the value of the spread.
The daily chart above depicts the profit zone for the spread. A retest of yearly highs near $60 is the optimal scenario.
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No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.
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