Option Trading: 08/17/09

Monday, August 17, 2009

08/17 Daily Summary

Navigating the storm!! That's what we're doing as non-directional traders, I'm rolling from one iron butterfly into another and already making adjustments on the SEP position.. I decided to keep on top of the AUG trade, rolling the PUT side down to cut delta and gamma exposure, now it all depends on how far this correction will be, one way or another, I think my chances are good of MNX staying in the profit zone for AUG.

Detailed Positions:
08/17 MNX Iron Butterfly - SEP
08/17 IBM Calendar
08/17 MNX Iron Butterfly

08/17 MNX Iron Butterfly - SEP

OUCH!! Taking a 2 standard deviation move right off the gates is never fun! This time we'll be testing the MNX, can it handle it?!? Can I handle one hard-core trade after another? I thought I'd get a break in the SEP contracts, well, this may be just the beginning of another long trade..

I was forced to cut deltas, my original plan was to leave the position alone, we broke the threshold of comfort, so I cut the deltas and am ready to keep with the market if we keep rolling down.

Position's History:
08/14 MNX Iron Butterfly - SEP
08/15 MNX Price & Volatility Study
08/13 MNX Iron Butterfly - SEP *New*

Return to home

08/17 IBM Calendar

I'm willing to go all the way for the 15% ROI. I noticed IBM did not fall as badly as the rest of the market, and its 1-hour chart was actually showing some willing buyers. I have my exit pre-set if we take a deep drop Tomorrow, otherwise I'll take it to the target.

Position's History:
08/14 IBM Calendar
08/13 IBM Calendar
08/12 IBM Calendar
08/11 IBM Calendar
08/10 IBM Calendar
08/07 IBM Calendar
08/06 IBM Calendar
08/05 IBM Calendar
08/04 IBM Calendar
08/03 IBM Calendar
07/31 IBM Calendar
07/30 IBM Calendar
07/29 IBM Calendar
07/28 IBM Calendar
07/27 IBM Calendar *New*

Return to home

08/17 MNX Iron Butterfly

I'm still in this trade! I guess that if MNX keeps on rolling down I'll take a small loss, otherwise, it will be a small win. One way or another, I rolled the 152.5 Puts to 147.5 Put. This trade is being a long lesson in stayig in the game. In past trades I would be getting out, this time I'm willing to take the dance to the last minute.