Friday, March 12, 2010

03/12 NDX Fast Butterfly (from 03/01)





You will never find me again opening a straight-butterfly. If you do, feel free to add a comment on the blog, call me stupid (or worse). This trade is my own version of “The Fun House” movie, the tag line reads: Pay to get in, PRAY to get out.. As any Brazilian will recognize the movie’s title in Portuguese: pague para entrar, reze para sair.. Here we go..

I tried, for one full hour to get out of this trade, I had my game-plan laid out as of last night. I figured I had lunch time to work my way out and did the home work the night before.. The reality? Not even the spreads would get filled, when one of them finally got filled, the others refused to cooperate, I quickly dumped the long May call, and then decided to finish off what I started and executed the other spread as single contract orders. One hour and I could only exit ½ of the first butterfly and my long call..

Well, this will work out for the best, just as long as we see the market going down on Monday , I didn’t mind get delta negative because the candle pattern is a “toppish” formation, so I do expect some pulling back. We’ll see, needless to say, the fun house continues.




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