09/23 Daily Update

Both positions got a good break Today as the markets sold off in the final hour of trading. I was about to make up-side adjustments, but noticed the sentiment was changing.


I got a few interesting ideas from the California 1 trading group meeting Today, it seems a few of the folks are trading the weekly contracts on OEX and someone also thought about buying a calendar end of day Friday to sell it on Monday for profit to bank on Market Maker's habit of pushing vols lower on Friday and pumping it back up on Monday. I'll do some experimenting with them in the next few weeks.


Position's Details:
09/23 RUT Iron Butterfly
09/23 MNX Iron Butterfly

09/23 RUT Iron Butterfly

The position got a break and is finally in the black after Today's price action, my hope is that we go into some sort of consolidation on this price zone, maybe a bit further down.

09/23 MNX Iron Butterfly

The position got a break Today as the market sold off in the final hour of trading. I'm looking for a consolidation from here, will be specially good if we spend a few days a bit further down. Contingent orders in place, waitting on Tomorrow.

Sometimes, luck helps you out too. MNX got within .10 points from hitting my up-side adjustment and backed off, if we had hit that adjustment, I would have given up 1/2 of the profits the position made when it reverted direction to the down-side.

06/22 Daily Summary

I apologize for not posting Yesterday, I was traveling from Salvador/Brazil to Sunnyvale/California and after such a long journey I had no energy left to post on the blog. I was barely able to create contingent orders for Today. To be trully honest, I'm glad they were not needed Today, because I had little faith in my mental state Yesterday to make sure the contingent orders were good :)

By the end of day Today I felt that it was time to cut a few deltas from both my positions, I used different approaches on the RUT and MNX trades, you can see on the details:

Position's Details:
09/22 RUT Iron Butterfly
09/22 MNX Iron Butterfly

09/22 RUT Iron Butterfly

I did a vertical roll to adjust my position Today. I noticed that we were leaning short deltas and didn't want to add a long CALL, as it would simply smash my theta. So I moved the short 610 Call to the 620 strike level. While this might have been a bit preemptive based on Dan's rules, I felt it was ok to do so.

Notice on the 5-Day Vipes chart that we might be slowing down on the upward pressure, notice that for the past 2 days bars. That being said, there has been very little "down days", as we seem to find buyers every time we move lower, so I have to keep on playing the non-directional approach.

09/22 MNX Iron Butterfly

At Today's closing I felt the need to control the deltas, they were getting out of hand, so I added a long NOV contract. Cut delta from -56 to -33, keeping it around the 1:1 ratio. I didn't want to go overboard here.

I notice on the 5-Day VIPES graph that we still have upward pressure. This seems to be slowing down on the RUT profile, however, notice we only had "up" days for almost 2 weeks now.

09/18 Daily Summary

I hope everyone enjoys the weekend, I sure will! No major change on both positions Today, that's always good news! I have also posted my backtesting for the RUT Iron Butterfly.

Position's Details:
09/18 RUT Iron Butterfly
09/18 MNX Iron Butterfly
09/18 Backtesting RUT Iron Butterfly