7/22 Daily Summary

Today only the MNX kept pushing higher, the other indexes posted slight losses. As I glance over the charts, it is showing some hesitation at the top, so we'll see how it develops in the next couple of days.

One way or another, I'm being extra conservative with adding protection against the up-side movement. I'm specially avoiding adding put spreads. Who knows, this may snap back to the lows in a few days worth of trading. One has to remember we're trading during the summer months, and there are a lot less players, so it doesn't take much to move the market one way or another.

I adjusted the MNX Iron Butterfly, closed the PUT diagonal on the SPY Double Diagonal and finished allocating the RUT 30-day Iron Condor. Now all that is left is the IBM calendar, which I may start building early next week.

I didn't backtest the MNX Iron Butterfly, decided to take a mid-week break. I sent out an improvement request for TOS's backtrading feature, I'm hopping they implement it. It will make my backtesting a LOT easier.

Position's details:
7/22 RUT 30-Day Iron Condor
07/22 MNX Iron Butterfly
07/22 SPY Double Diagonal

7/22 RUT 30-Day Iron Condor

Today I finished allocating capital to the RUT 30-Day Iron Condor. I decided to wiggle my contracts one by one, and ended up getting the same price as Yesterday, when I entered it all as one single order. One way or another, the trade is brand new, it has insurance to protect against a big move in the next few days.

Position's History:

7/21 RUT 30-Day Condor *New*

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07/22 MNX Iron Butterfly

I am being extra conservative with adjustments on the trade. After the previous 2 iron butterflies were over-adjusted, I'm giving the trade a bit more room to breath. MNX is not yet giving a break to the up-side.

I have a contingent order to further flatten the deltas if we pass Today's highs. Lets see what Tomorrow brings. I considered adding a baby butterfly Today, decided not to do it, I'll do it Tomorrow if we keep on pushing higher.

Position's History
7/21 MNX Iron Butterfly
07/20 MNX Iron Butterfly
07/17 MNX Iron Butterfly
07/16 MNX Iron Butterfly *New*

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07/22 SPY Double Diagonal

Today I closed the PUT Spread for .18c, locked in profits from it. I'm not yet convinced that I want to re-open the PUT diagonal. I've been looking at the daily charts on the SPY and it is showing some signs of weakness on the bullish side. Let's see if it materializes in the next few days.

In the back-pocket, I'm looking at adding theta with maybe an iron butterfly if we get to 97.5. I'm looking at the Volatility cone and this is a huge up-side movement, the fact I'm down only 10% is positive. Of course, I'm only buying time right now, will have to add more theta to the trade sooner or later.

Position's History:
07/21 SPY Double Diagonal
07/20 SPY Double Diagonal
07/17 SPY Double Diagonal
07/16 SPY Double Diagonal Decision Making
07/16 SPY Double Diagonal
07/15 SPY Double Diagonal
07/14 SPY Double Diagonal
07/13 SPY Double Diagonal *New*


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07/21 Daily Summary

Despite early selling, most indexes pushed higher at the end of the day Today. This may continue to move upwards, or it may start attracting sellers at the current levels. One way or another, my job here is not to guess and to manage the positions as they go along.

I'm near a second adjustment on the SPY Double Diagonal. Also close to adjusting the MNX Iron Butterfly. I entered the RUT 30 Day condor Today, but couldn't get filled on all the lots, am planning to add to the position Tomorrow. Other than that, continue to perform backtesting on the MNX Iron Butterflies.

SPY Double Diagonal Adjustment: As it turns out, the decision of looking at the best alternative on the longer term paid off. If you look at the decision making I did back on the 17th, if I didn't have rolled the call contracts, I'd be within 1 st. deviation from max loss. As for Tomorrow, my plan is to close the PUT diagonal and leave the call side on, if we keep moving higher, say 97.5, then I'll add something to help with theta, likely an Iron Butterfly.

Positions Details:
7/21 MNX Iron Butterfly
07/21 SPY Double Diagonal
7/21 RUT 30-Day Condor *New*
07/21 MNX Iron Butterfly Backtesting

7/21 MNX Iron Butterfly

I didn't want to do any adjustments on the trade prior to the first 7 days, however, it seems like MNX is forcing me to do it. I'll have a contingent order to cut deltas at or around 146 Tomorrow. Once the deltas are cut, if we keep moving higher, then my next step is to add a smaller iron butterfly (baby butterfly) at the up-side B/E level to increase theta.

Position's History
07/20 MNX Iron Butterfly
07/17 MNX Iron Butterfly
07/16 MNX Iron Butterfly *New*

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07/21 SPY Double Diagonal

Despite early day selling, SPY ended up pushing higher Today. It is beyond the B/E adjustment and I am evaluating my next step. I might roll the PUT diagonal up, or simply roll a few more CALL spreads, may even do both.

Position's History:
07/20 SPY Double Diagonal
07/17 SPY Double Diagonal

07/16 SPY Double Diagonal Decision Making
07/16 SPY Double Diagonal

07/15 SPY Double Diagonal
07/14 SPY Double Diagonal

07/13 SPY Double Diagonal *New*


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