CLOSE: DRYS BRCS -60.1%, GOOG Vulture -11.49%, & RUT BWB +53%

RUT Broken Wing Butterfly (BWB):
On 2/7, I closed 10 contracts & booked a profit of $6,780 ($5.65 X 12 contracts) plus $124 ($0.62 X 2 contracts), leaving 2 contracts
Max risk on 2 remaining contracts= $2,870 ($14.35 X 2 contracts)
6.27/14.35= +44% ROI

Today I fully closed out of the trade:
Sold 1 Feb 670 Call
Bought 2 690 Call
Sold 1 Feb 730 Call
For a total credit of $1.32
1.32/14.35= +9.2% ROI

Total ROI= 53.2% profit


DRYS Bear Call Spread (BRCS):
Bought back Feb 80 Call and sold back the Feb 85 Call for a total debit of $3.20. I sold this trade for an original credit of $0.49.
Closed out trade for a loss of $2.71. 2.71/(5.00-0.49)= 60.1% loss

GOOG Vulture:
Bought back Feb 540 Call & Sold Feb 550 Call for total debit of $2.30
1.30-2.30= $1.00 loss
1.00/(10.00-1.30)= 11.49% loss

Adjust: RUT Broken Wing Butterfly Feb 670/690/730

On 1/25, I opened a broken wing butterfly. Today, I did something funky for probability, with the help of Mojo at InsaneMoney.com. Here's how I understand it...

I started with a butterfly of:
6 Feb 670 Calls
12Feb 690 Calls
6Feb 730 Calls
For a credit of $5.65

Today, I closed out of:
5 Feb 670 Calls
10 Feb 690 Calls
5 Feb 730 Calls
For a credit of $0.62

Max reward= original12 contracts of $5.65
Max reward on remaining 2 contracts after closing 10= $6.27 ($5.65 + $0.62)
Max risk= $20-$5.65= $14.35

Max profit:
So today I closed 10 contracts & booked a profit of $6,780 ($5.65 X 12 contracts) plus $124 ($0.62 X 2 contracts), leaving 2 contracts
Max risk on 2 remaining contracts= $2,870 ($14.35 X 2 contracts)

6.27/14.35= +44% ROI

If the stock expires right around 690 on exp. day, then I have the shot at making a full $25.65 ($20 diff of top 2 strikes plus original credit of $5.65).
If the stock expires below 710 (which was my embedded butterfly strike), then I keep $5.65.
My Breakeven (B/E) is $715.65 (710 strike plus 5.65)

By sizing down in this manner, this still gives a chance to see if I can make the full $25.65 profit by expry, without exposing the whole 1% of my portfolio to it.

This is a highly advanced and confusing trade so I would not recommend it to beginners.

OPEN: RUT Broken Wing Butterfly Feb 690/670/730 Call

This is a wild trade...my trading mentor on Insane Money turned me onto this new trade strategy.

Here's the best way it can be described:
"Posted on January 24th, 2008 by Mojo (Insane money)

OK, volatility is high, I’m still bearish on the market and I’m looking for some larger returns. I would like to setup a trade on the RUT where I can be bearish, with a little room for bullishness, and put theta and vega on my side.

WARNING: This is an advanced trade. Limit yourself to no more than 1% and only take this trade if you are a wildly profitable and consistent options trader (and if you are please send me an email!)."

Here's what I did...
It starts out with a butterfly like this (Insane Money states "With a butterfly, you have time and volatility decay on your side. You also have a large upside."):
Buy 6 Feb 670 Calls
Sell 12 Feb 690 Calls ATM
Buy 6 Feb 710 Calls

however, we added a bear call spread because we thought it was more likely to head downward...
Sell 6 Feb 710 Calls
Buy 6 Feb 730 Calls

So when you actually place the trade, this is what the order looks like because if you notice, the Feb 710 Calls cancel each other out.

Bought 6 Feb 670 Calls
Sold 12 Feb 690 Calls
Bought 6 Feb 730 Calls All for a total credit of $5.55

I was looking at this trade the night before with my mentor expecting to get a credit near $3.70 however, I placed the trade GTC that night and it got filled the next morning at open right when the stock gapped up, so I made a killer credit of 5.55! NICE!

So, if the stock is at 690 at expiration in Feb, I make the most profit, however it lands within the range of 690 plus or minus my debit from the original butterfly, I will be at breakeven. This is a high risk, low probability trade so I am trying this out to see what happens.

So in the end I make a $5.55 credit on a risk of $14.45 ($20 diff between 670 & 690 Call - credit)