07/06 Daily Summary

Today I struggled with the down-side adjustments, specially on the RUT position. They were hit and the market reverted back up, but I stayed negative on the RUT because of the high price paid for the adjustment.

Both trades would be positive by over 6% if I had made no adjustments Today. This leads me to the conclusion that I'm keeping my adjustments too tight. This requires some fine-tunning on my part, specially after the long weekend, it hurts giving up that much theta..

Position Details:
07/02 SPX Iron Butterfly
07/03 RUT Iron Butterfly

07/06 SPX Iron Butterfly

Only one down-side adjustment was hit on the SPX, when it went back up the trade finished the day in profits. I'm still having a hard time with the "variable" P&L curve, but will get a handle on it.

SPX is sitting in a nice spot, so I have set the adjustment points are further away and a bit more granular.

Position's history day-by-day:
07/02 SPX Iron Butterfly
07/01 SPX Iron Butterfly
06/30 SPX Iron Butterfly
06/29 SPX Iron Butterfly
06/25 SPX Iron Butterfly
06/24 SPX Iron Butterfly
06/23 SPX Iron Butterfly
06/22 SPX Iron Butterfly

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07/03 RUT Iron Butterfly

RUT hit 2 of my adjustment points to the down-side, only to revert right back up. I paid a lot for the AUG Puts, as they were executed early in the day, and this hurt the position by quite a bit. At the end I wanted to sell one of the 470 PUTs to replace it by a 450 and ended up selling the AUG 480 PUT as a vertical credit spread with the 450.

I have to improve the way I'm dealing with this trade, maybe I'm adjusting too soon and too much, this is specially bad on days like Today, when the market bounces back up.

Position's history day-by-day:
07/02 RUT Iron Butterfly
07/01 RUT Iron Butterfly
06/30 RUT Iron Butterfly
06/29 RUT Iron Butterfly
06/25 RUT Iron Butterfly
06/24 RUT Iron Butterfly
06/23 RUT Iron Butterfly

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