Tuesday, May 19, 2009

5/19 DIA 41-Day Double Diagonal

I exited the position Today, the reasons behind were the fact we're almost 2 weeks on the trade and not over 5% profit, DIA has been flat for this period and the Volatility has collapsed quite a bit, giving me a much smaller profit potential at expiration. In summary, the volatility drop created a bigger sag than I wanted on the trade.

When I started the position, the profit potential in the middle of the position was over 20% ($125), Today it was around $60 (10%).

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