ID: 2025 - 009

13
5.5.2025

Trade #9 of 2025 executed.

Trade entry at 137 DTE (days to expiration).

Trade construct is a PDS (put debit spread) at Delta 15 combined with a PCS (put credit spread) at Delta 15. Overlapping short strikes give it the "unbalanced" butterfly nomenclature.

Sizing and strike selection is designed to keep the risk/reward "AT EXPIRATION" to a 1:1 risk profile. This lets charm work it's magic (second order greek), while exploiting the fact that this is a non-directional bias. The process is a disciplined and systematic approach letting time decay evaporate the extrinsic time value from the short options until target profit is achieved.

OF NOTE: This trade opened at EXCELLENT fills, and there is zero risk to the upside. The danger is of a catastrophic move to the downside, which will bring in phenomenal gains for ID 006 and 008. 😊

Happy Trading!
-kevin

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