This trade is a little different to what you would normally see and I call it a lottery butterfly. I use the term lottery, because there is only a very small chance that it works, but the payoff could be large.
The trade costs about $260 and could pay as much as $9,740 (very unlikely to get that though).
The idea is that if, by any chance SPX drops again and retests the lows, we should capture some nice gains with our butterfly centered right at 2200.
Let’s see what happens. Just keep in mind that the odds of losing 100% of the investment on this one are high.
The purple line below is May 11th.
