Got my two positions for the JAN/12 expiration cycle this week. After evaluating our trading goals for 2012 we have landed on keeping it simple and staying the course with only a few strategies. So I'm going to focus on the IBM triple calendar and the NDX Iron Butterfly (with less adjustments). Cheers!
Gustavo
2 comments:
Hi Gustavo,
Are you starting these 35 days out now instead of 30?
Happy Christmas and all the best for the New Year to you and your family.
Cheers
DZ
Hey DZ,
I decided to start my trades with 38 days from expiration as this usually falls on a Monday, if need be I may wait a few days as this is not a hard rule, more like a guideline.
For this particular NDX Iron Butterfly I did not enter Monday because it was a big day with a large gap down.. Tuesday was also a pretty active day, and by Wednesday I figured the water was choppy anyhow and the vols were a bit higher so I took the plunge (with not the full position's size).
I've learned through back-testing that when the NDX is very active, it is best to enter in smaller chunks and leave some of the position for adjustments.. If the market settles you tend to get your $ goal anyway, and if it doesn't, you have capital left to adjust and stay in the game to reach the goal..
Thank you for your Holiday wishes, hope you had a wonderful Christmas as well and wish you and your family all the best in 2012!!
Cheers!
Gustavo
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