My question for this Iron Butterfly is: How the BUY Binary produced Profit? I think I know why but I would like to have confirmation of what happened. I believe that it has something to do with the “Greeks” of options which I have heard about, but don’t know enough to explain what happened to the BUY Binary making profit.
I setup an Iron Butterfly for a News Trade 8:30am EST 8/18/17 (CAD various events) I could not find the prices for the Buy and Sell Binaries in the intraday binaries that I wanted. So I went to the Daily binaries and found the two that I used.
I think the BUY Binary being profitable has several things.
- It had 3 hours before Expiry.
- The market moved 45 ticks below the BUY Binary at time of Take Profit.
- The fact that I had set a Take Profit produced profit, but if I had not set Take Profit it would have been a loser.
I was wondering if the market had only moved to let’s say 15-20 ticks below the BUY Binary would it still be profitable with the Take Profit I set. Is there a way to figure that?
Here is a chart for USD-CAD marked up and a screen shot of the Nadex trade.
Thanks for any help at all.