Thursday, November 4, 2010

11/04 Daily Summary

Ouch! This morning when I saw we gap up to 2185 I felt a bit sick on my stomach.. Well, on the bright side I had moved those short calls Yesterday, so this saved me from hitting a wall right away.. The contingent orders triggered and I'm still in the trade. The up-side movement is tricky because the volatility goes down with it, so right now I'm vega positive which means I have up-side risk due to volatility compression.. I will roll one more time if we keep trading higher.

I want to add a butterfly Tomorrow morning because the current theta at these levels is not enough to bring in profits. However, I will have a super busy Friday at work, so I'm not sure if I'll be able to do so. I don't like opening trades on Friday either, so I may just have to sit on my hands and see what comes out of it. We'll see.