Wednesday, June 3, 2009

MDY 30-Day Condor - Recovery plan

As it turns out, I got a gift. Volatility increased and the MDY that seemed completely lost to Max Loss got a recovery. As of right now, it is down 15%, compared with being down 23% Monday, that's 8% recovery.

The way it is, the position will basically end up negative for the month, so I've decided to add to the trade as an effort to bring it home profitable. I'm confortable with doing so, my goal is to bring profits, it doesn't matter exactly how. So, let's look at options:

Here is the trade as it stands, we're approaching the down-side risk zone.
Option 1: Add an Iron Butterfly
Option 2: Adding a Calendar

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