Volatility is keeping my money away on the trade. Decided against adding a bearish calendar to cut vega. Bottom line is to continue on wait and see mode, time will eventually deflate these contracts.
Monday, April 26, 2010
04/26 NDX Iron Butterfly – MAY/10
Volatility is keeping my money away on the trade. Today I thought about adding a calendar or something to cut my vega even more case we drop Tomorrow. After going back and forth for a while I decided against touching the trade. Bottom line, there is still time for it to make 10% and if I start adding to it now, may run into more trouble. If we push higher then I’ll add another butterfly and cut&roll, otherwise I’ll have to hang around and wait for vols to drop back. Good thing is that so far all I have is front-month contracts, therefore vols must go to zero sooner or later.
Subscribe to:
Posts (Atom)
