1: Roll to 6/27
Buy close 6/20 700 cc
sell open 6/27 700 cc --- This gives you $5 extra credit
2: Apply double butterfly. These double butterfly cost is approximately $5 too. so your entire combo should cost very little
Buy 1 open 6/27 700 cc
sell 2 open 6/27 720 cc
Buy 1 open 6/27 740 cc
Buy 1 open 6/27 720 cc
sell 2 open 6/27 740 cc
Buy 1 open 6/27 760 cc
You can see many of these orders are canceling each other, so, your final order combo is
- Buy close 6/20 700 cc
- sell 1 open 6/27 720 cc
- sell 1 open 6/27 740 cc
- Buy 1 open 6/27 760 cc
The net result here is that, as long as SPOT stay below 740, you will make $20 extra compared to where you are now (ie, getting assgined at 720)
If SPOT goes above 760 by 6/20, you are back to where you are today, which is getting assgined at 700
