06/15 VIPES

06/15 RUT 30-Day Condor *new*

I started a new 30-Day condor Today, I'll manage it by cutting the position delta in 1/2 if we get to the adjustment levels as per the risk profile.

06/15 SPY Double Diagonal

Today's move put us right in the center of the double-diagonal. The volatility pop also helps the position, now let's hope SPY stays where it is for a few days so we can get maximum time decay.

06/15 DIA Iron Butterfly

I'm exiting the butterfly, started peeling off spreads at the end of the day to keep its delta as neutral as possible. Today's down move forced an adjustment, but with entry orders I was able to cut delta in 1/2 and not more than that, allowing to benefit from the last hour pull back.

06/15 MDY 30-Day condor

I started bailing out of this trade Today, we're approaching too close to max loss and I don't want to overstay on expiration week. I removed almost all the PUT risk and am working on the CALL risk, this is what the profile looks like, the delta is -3, and the only short PUT contract I have is at 90 strike, so there is plenty of room on the down-side. The short CALL I have left is 110, a bit closer, but based on Today's break-down, I'd say it is getting safer by the day.

06/12 When watching the charts beats you up

I've relapsed into an old habit that I'm working to fix: day-trading these income positions. As I understand, these option strategies are not made to be day-traded, there are just too many variables that affect you when you get in and out of contracts.

If you're not trading intra-day, watching the charts will make you go crazy! It is like a surfer, watching the ocean.. He tells himself he is not going in the water, then he waits, waits, and eventually he'll dive in. Just when the conditions are not so good anymore.. Like that, if I'm watching the price action during the day, I'm getting all kinds of emotions running through my brain, and eventually I'll give in to the desire to "adjust" my position.

Or even worse, I've been watching the charts the entire week this week, and Yesterday I was simply too tired to know any better and over adjusted my trades, cutting the deltas by too much and without the best alternative. Long story short, I beat myself too much and made a decision without being on the top of my game.

So, from now on, I'll watch the market at the critical closing hour. And prepare contingent orders to cut deltas when they need to be cut. I'll use my extra time with activities such as backtesting and watching Dan Harvey's videos and sessions.

Just to be clear, I watch and trade intra-day. I starting trading currencies and later on learned about options. So, I'll be trading FOREX before the US opens. Being in Brazil, the time-zone is really awesome! It allows me to go to the wake up, exercise, have breakfast, trade FOREX, then study options. By the end of the day I get back in to look at my positions at closing and plan for adjustments on the next day.

06/12 SPY Double Diagonal

The main thing to notice is that the Volatility has dropped by 12% on this trade, I'm checking the middle of the graph at expiration to see if the P/L there has collapsed or not, so far it is very good, only dropped by about 2%, leaving with 15% ROI in the middle. Notice, if we see a large drop it is a sign to get out.

Other than that, time is going by, so I'm starting to look for the $ to show up.