With 1.5 hours of trading left on expiration Friday, our Tesla butterfly trade has worked exactly as well as it could have, with the shares hovering right at our short strike.
At this point, rather than risk what I've made in order to capture the last few crumbs of time decay, I'm going to (mostly) close the trade.
I'm going to buy back 2 360 calls for $1.50 each and sell 100 shares of stock at $360.50.
This eliminates all risk on the trade, as I will no longer be short any options.
The total profit on the trade at this point will be $23.90 per spread, not bad for something that onlly cost $3.60 a week and a half ago.
Plus, just in case something really crazy happens and the stock goes lower than $330 or higher than $390 before the markets close, I will still be able to buy or sell 100 shares, respectively, and add a bit to my profits.
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