Saturday, November 12, 2011

11/11 Weekly Update

Last Monday, Nov 7th I have closed the NOV cash secured puts and reloaded with the DEC contracts. I also started a NDX iron butterfly and am planning to trade it with a very simple adjustment strategy: add another butterfly at the top or bottom if the market moves up or down to the outside range of the butterfly, the plan is to go for about 10% of the total position size and so far I have only 1/4th of the position loaded.

Notice NDX trading in wide swings on a daily basis, the key difference is that these swings are not moving on a trend, it has been moving in a zig-zag sideways mode.