The first systematic trade under the new Broken Wing Butterfly framework is now closed.
SPDR S&P 500 ETF Trust (SPY) moved exactly into the type of environment this structure was built for: upside momentum slowed, the overbought condition cooled, and the position allowed us to take profit without waiting for expiration.
Trade Recap
Structure: Call BWB
Expiration: June 26, 2026
Long Call: 776C
Short Call: 777C
Long Call: 800C
Contracts: 2
Credit Received: $388
Broker Fees: –$5.30
Net P/L: +$256 (66%)
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👉 View in Trade Log
What Worked
The core thesis was simple: SPY was extended to the upside, RSI was elevated, and the move was no longer early.
The trade did not require a sharp selloff. It only needed the market to stop accelerating higher. That is the advantage of using a Call Broken Wing Butterfly in this type of setup.
SPY stalled, pulled back from the highs, and the overbought pressure cooled. That allowed the structure to reprice favorably while time decay worked in our direction.
The important part is that the exit followed the plan. This was never intended to be held into expiration. Once a meaningful portion of the available premium was captured, the position was closed and risk was removed.
Final Takeaway
This was the first closed trade under the updated framework, and it did exactly what I want this strategy to do.
The setup came from a systematic process, the risk was defined from the start, the market condition matched the structure, and the exit was taken before expiration.
A $256 net profit on the first Call BWB is a clean result — not because the trade was perfect, but because the process was clear.
Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.