Wednesday, July 28, 2010

07/28 Daily Summary

I’m back in the game and trading to win! Let’s bring this butterfly home and land some profits, shall we? By end of day Today I used the pull back and executed a few vertical rolls to move both my short Puts and Calls further away from the money. Typically I would start condorizing by end of next week, but given that this is the first day with profits, I figured I’d do this adjustment to reduced risk by reducing the amount of capital required on the trade, and cut my Gamma exposure. I want to keep this recovery going and not give it all up if we have another 2+ st. Deviation day all of a sudden... By moving a few of the calls and most of the Puts out a strike I cut my gamma, gave up a bit of theta, but to me the trade off was worth it.