Tuesday, March 8, 2011

3/8 Daily Summary

This is the quiet after the storm.. Let's hope so, this way I can land this trade with profits. So far it looks really good, a very positive recovery Today. I'll start peeling spreads out of the position either Tomorrow or Thursday morning, my goal is to keep the gamma exposure under control during these last few days of the trade.

All and all, it has sure been a great ride! No time to fool around, that's for sure!


potentcocktail said...


Thanks for your posts! I'm more of a beginner at options trading, and I just signed up for Sheridan Mentoring and hope to learn a lot and make lots of $$$ :)

Can you explain the difference between a butterfly roll and a "cut and roll" for this beginner? Thanks!

Gustavo's Trades said...

Hi there, welcome on-board, this is a great journey to say the least!

Both refer to moving your short strikes away from danger. With a cut and roll, I use a debit spread to close the short spread and use a credit spread to re-open further out (sometimes do as a condor order), the butterfly row does the same, except I use a butterfly to buy back the shorts and re-sell them at the same point the previous longs were.

This is easier once you watch a few videos on Sheridan Mentoring.. Just search for butterfly roll or cut and roll and you'll find videos. I suggest looking at Dan Harvey's videos.

take care!