05/04 Daily Summary

Bears are out and seem to be hungry! I got my contingent orders adjusting the trade for me, then manually added the cut&roll and the extra iron butterfly to bring on extra theta. Still in the game and keeping an eye on the prize. Remember the roller-coaster video.. which trader are you? I’m keeping that in mind to make sure I’m the one observing and riding the waves.
Worth re-posting? You bet:
http://www.youtube.com/watch?v=hyFl-IyDUhE

05/04 NDX Iron Butterfly – MAY/10

I’m still in the game, following my game plan, and as you can see I forecasted to be down 7% if hit both my down-side adjustments, as it turns out I’m down -7.5% after going beyond the second adjustment point, not bad.. One think I noticed was that adding the cut&Roll and the extra iron butterfly ended up costing me about 2% in ROI, I would be down only 4.5% if had executed only the hedging adjustments.. I think this will pay off Tomorrow if we pull back slowly and volatility comes back a notch or two.
Bottom line, I needed to increase theta and so I did as I had previously planned to do. No hesitation.