Earlier §12.7 suggested opening a separate long call alongside the
iron fly as a "companion" to capture moonshot upside. That framing
was wrong: it doubles capital at risk while buying expensive 80% IV,
and is redundant with the §6 conversion plan.
The real companion is what the iron fly becomes after the 3-month
conversion — a long $160 call at ~$45 net cost basis, financed by
realized theta. Same exposure as a $1,870 outright purchase, at 4%
of the cost.
Updated §12.7 to:
- Remove the "add a small companion now" suggestion
- Reframe the conversion product as the companion
- List the rejected alternatives explicitly so future-me doesn't
re-litigate them
Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
Reference document for the open INTC broken-wing iron butterfly
entered 2026-05-13 (Jan-2027 expiry). Covers:
- Position snapshot + thesis + EV analysis across 3 vol regimes
- Phase-by-phase management plan (Mermaid timeline)
- Conversion play: close 3 legs at month 3 once theta paid in,
leaving a near-cost-free long call 160 for upside capture
- Crash playbook for -20% drops
- Hard rules + decision matrix by price zone
- Trade journal + performance tracking templates
- "10/10 plan" section: pre-staged broker orders, multi-name
diversification, IV-regime entry gate, % of portfolio sizing,
and the long-call-diagonal alternative for high-conviction
directional views
Filed under /trades/ as a living document; revise at each decision
point.
Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
