09/14 SEP MNX Iron Butterfly (day-by-day review)

I think overall this trade was awesome! It got to 15% ROI, my target was set to 20%, I ended up closing it with just around 10%. After watching a Dan Harvey video he mentioned he goes for 10%, so I realized 20% was over aggressive, and that 15% was a great deal.

Mistakes I believe I made:
1) Looked at P&L and over-adjusted to the down-side on the 17th, it was down because of volatility and option pricing, P&L got back in order in the next day
2) Went over the weekend with too much gamma exposure and with ITM short calls

Things I did right:
1) Controlled trade in the last week, got gamma back on track and landed the position with around 10% ROI

Things to keep in mind for next trade:
1) Go for 15% ROI
2) Watch all greeks, controll gamma exposure


So, here is what happened on a daily basis:
08/13 MNX Iron Butterfly - SEP *New*

08/17 MNX Iron Butterfly - SEP - Took a 2 st. deviation move right off the gates, got down 7%

08/18 MNX Iron Butterfly - SEP - P&L back in order

08/19 MNX Iron Butterfly - SEP - Started rolling against the up-side. I may have over-adjusted the down-side

08/20 MNX Iron Butterfly - Adjusted the position, back in the center of the graph

08/21 MNX Iron Butterfly - Need a few days to recover

08/24 MNX Iron Butterfly - MNX took a break, back in profits, theta increasing

08/25 MNX Iron Butterfly - Theta : Delta ratio 1:1, borderline delta exposure

08/26 MNX Iron Butterfly - Not much happening, collecting $

08/27 MNX Iron Butterfly - 6% ROI Cut deltas at end of day

08/28 MNX Iron Butterfly - 8% ROI

08/31 MNX Iron Butterfly - MNX Pulled back, P&L up to 10% (**Gamma over 30)

09/01 MNX Iron Butterfly - MNX moved down fast, Volatility and Options pricing pushed P&L down to 0, (Gamma still over 30)

09/02 MNX Iron Butterfly - Recovered some P&L

09/03 MNX Iron Butterfly - Back to around 10% ROI

09/04 MNX Iron Butterfly - Flattened delta, (**Gamma over 40)

09/08 MNX Iron Butterfly - Small P&L drop with market moving up after long weekend (Gamma back to 20)- Started managing inventory, getting rid of delta hogs

09/09 MNX Iron Butterfly - Moving short ITM calls out of the money, gamma around 20, flat deltas and good theta

09/10 Daily Summary - Started to exit the trade

09/11 MNX Iron Butterfly - SEP - Out 9.5% ROI