07/21 Daily Summary

Despite early selling, most indexes pushed higher at the end of the day Today. This may continue to move upwards, or it may start attracting sellers at the current levels. One way or another, my job here is not to guess and to manage the positions as they go along.

I'm near a second adjustment on the SPY Double Diagonal. Also close to adjusting the MNX Iron Butterfly. I entered the RUT 30 Day condor Today, but couldn't get filled on all the lots, am planning to add to the position Tomorrow. Other than that, continue to perform backtesting on the MNX Iron Butterflies.

SPY Double Diagonal Adjustment: As it turns out, the decision of looking at the best alternative on the longer term paid off. If you look at the decision making I did back on the 17th, if I didn't have rolled the call contracts, I'd be within 1 st. deviation from max loss. As for Tomorrow, my plan is to close the PUT diagonal and leave the call side on, if we keep moving higher, say 97.5, then I'll add something to help with theta, likely an Iron Butterfly.

Positions Details:
7/21 MNX Iron Butterfly
07/21 SPY Double Diagonal
7/21 RUT 30-Day Condor *New*
07/21 MNX Iron Butterfly Backtesting

7/21 MNX Iron Butterfly

I didn't want to do any adjustments on the trade prior to the first 7 days, however, it seems like MNX is forcing me to do it. I'll have a contingent order to cut deltas at or around 146 Tomorrow. Once the deltas are cut, if we keep moving higher, then my next step is to add a smaller iron butterfly (baby butterfly) at the up-side B/E level to increase theta.

Position's History
07/20 MNX Iron Butterfly
07/17 MNX Iron Butterfly
07/16 MNX Iron Butterfly *New*

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07/21 SPY Double Diagonal

Despite early day selling, SPY ended up pushing higher Today. It is beyond the B/E adjustment and I am evaluating my next step. I might roll the PUT diagonal up, or simply roll a few more CALL spreads, may even do both.

Position's History:
07/20 SPY Double Diagonal
07/17 SPY Double Diagonal

07/16 SPY Double Diagonal Decision Making
07/16 SPY Double Diagonal

07/15 SPY Double Diagonal
07/14 SPY Double Diagonal

07/13 SPY Double Diagonal *New*


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7/21 RUT 30-Day Condor *New*

Today I started loading the RUT 30-Day Condor, I didn't get filled on all my contracts, so will keep on adding to the position Tomorrow, I'd preffer to be starting this trade in the middle of the recent range, however, we never know, the market may keep going higher from here, so we'll see.


I've allocated 1/4th of the position, plan to enter the remaining Tomorrow and add insurance. Management strategy is to hedge following the Mark Santucci's guidelines (as explained in the Dan Sheridan's mentoring). Will post more details about the trade management once I have the complete position on.

07/21 MNX Iron Butterfly Backtesting

The FEB/09 Contracts were the easiest of the bunch so far. Youd' get 10% in 4 trading days and fly up to 20% a few days later. If you were to stay in the trade and manage it, you'd end up with almost 40% by the expiration week, but of course, I'd be out with 10% in 4 days, thank you. :)

Results: +10% ROI


Previous Postings
07/20 MNX Iron Butterfly Backtesting
07/17 MNX Iron Butterfly Backtesting
07/16 MNX Iron Butterfly Backtesting
07/15 Backtest Challenge

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