Saturday, May 30, 2009

JUN/09 DIA Double Diagonal (Day-by-Day Review)

I started this trade slightly bearish and vega positive, my intention was to capitalize on a down-move as I was expecting it to happen soon after placing the trade. As it turns out, the market did come down but went back up faster than I expected, and the drop in volatility hurt the position to a point where I decided to exit it.

In my mind, the Max profit in the center of the risk profile graph wasn't worth staying for the ride.

Start: 05/07/09
Finish: 05/19/09
Duration: a bit over 1 week
ROI: +1.82%

05/07/09

05/11/09

05/12/09

05/13/09 ("DIA pushed down Today, it is right in the middle of my profit chart, the "bearish incline" I did with the trade seems to be paying off")

05/14/09 (Note Vols dropped 6%, so far so good)

05/19/09 Exited the Trade (Volatility dropped 14% since I started the trade)

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