08/26 Daily Summary

The portfolio is recovering, I'm slightly negative at this point and depending on how the market behaves the next few days, It may start turning the table and getting into the profitable side. No change Today, except I added the 2nd half of the IBM calendar position.

One of the blog readers asked me what are the orange lines on the Volatility cone, they are the original expiration break-even for the position, at least that's what they are on the MNX Iron Butterfly. I didn't include them on the RUT position. This has been a busy week for me, so I didn't have much time to clean up the dashboard on the RUT trade and still need to put one together for the IBM trade.. Plan on doing it later in the week.

Position's Details:
08/26 IBM Calendar
08/26 RUT Iron Butterfly
08/26 MNX Iron Butterfly

08/26 IBM Calendar

I added the 2nd half of the position Today, we're still very much around the 120 strike, so I added the entire trade on the 120 PUT Calendar. If we move (up or down) I'll close some of the 120s to add the adjustment.
Previous Posting:
08/25 IBM Calendar

08/26 RUT Iron Butterfly

RUT Made a small recovery Today, adding the extra butterfly to increase theta is helping. If we move up I may have to roll the 560 Calls, will do that at the end of the day and not with a contingent order. For now, the contingent order is to buy a long call to hedge deltas, and by the end of the day I'll evaluate if it is time to start rolling the 560s

Previous Posting:

08/25 RUT Iron Butterfly

08/26 MNX Iron Butterfly

No major change Today, the position is collecting profits, which is always nice and very welcome. I've contingent orders to cut deltas if we move up or down.

Previous Posting:

08/25 MNX Iron Butterfly

08/25 Daily Summary

Today the only trade that needed a little push was the RUT Iron Butterfly. I started with a 30-point wide butterfly, so adjusting was very much expected.

Tomorrow I plan on adding the 2nd 1/2 to the IBM calendar, I'm leaning towards the 115 calendar, but have not yet being convinced we're going to have a big pull back from here, on the chart, IBM it looks weak at the top, but we'll see.

Position's Details:
08/25 IBM Calendar
08/25 RUT Iron Butterfly
08/25 MNX Iron Butterfly

08/25 IBM Calendar

Plan on adding the 2nd half of the trade Tomorrow. I'm leaning towards the 115 calendar, but not quite sure yet.

Previous Posting:
08/24 IBM Calendar *New*

08/25 RUT Iron Butterfly

Today I added to the RUT position, decided to open another iron butterfly at the 590 strike, this allows me to pump up the up-side break-even and really jack up the theta. I wanted to add 2 contracts, but made a mistake while entering the order and ended up with 3, not a big deal, just extra theta and more inventory to manage if we start rolling to the down-side.

Previous Posting:
08/24 RUT Iron Butterfly