Wednesday, July 14, 2010

07/14 Daily Summary

Thought about posting, no changes left on the JUL paper trade. I’m glad I got my real cash out of the JUL contracts as soon as I did. By looking at this paper trade in hindsight, I figure the next time it happens I can add another butterfly after the second cut and roll, this will bring extra theta and revert the vega back to negative. I think that having a vega positive position in the end wasn’t the best choice, as you can see from the dashboard the volatility went up 30% then came back down to zero... In any event, glad it was a paper trade. :) Looking at the AUG position, I’m starting to expect a pull back from this recent up-side swing, quite honestly the candle patterns don’t look that bullish to me.