04/27 Daily Summary

Volatility just exploded Today, sharp move all across the table, Tomorrow will be a key day. Interestingly enough my Iron Butterfly was not totally damaged Today, the vols didn’t hurt as much as I expected.

04/27 NDX Iron Butterfly – MAY/10

Interestingly enough, Today’s violent move didn’t hurt my position that much. I’m down about 7%, and still stand a chance to reach 10%. I am seriously considering adding a calendar to add theta and further reduce vega exposure if I see a pullback opportunity Tomorrow. Need to see where we are. In the mean time the plan is updated to continue managing the position.

04/26 Daily Summary

Volatility is keeping my money away on the trade. Decided against adding a bearish calendar to cut vega. Bottom line is to continue on wait and see mode, time will eventually deflate these contracts.

04/26 NDX Iron Butterfly – MAY/10

Volatility is keeping my money away on the trade. Today I thought about adding a calendar or something to cut my vega even more case we drop Tomorrow. After going back and forth for a while I decided against touching the trade. Bottom line, there is still time for it to make 10% and if I start adding to it now, may run into more trouble. If we push higher then I’ll add another butterfly and cut&roll, otherwise I’ll have to hang around and wait for vols to drop back. Good thing is that so far all I have is front-month contracts, therefore vols must go to zero sooner or later.

04/23 Daily Summary

Didn’t even watch the market Today, just a few glances here and there, seems like we moved up again in the final hours of trading. I have my contingent orders for the butterfly if we keep on going Monday.

04/23 NDX Iron Butterfly – MAY/10

NDX moved higher Today, the vols didn’t drop by much and until they do I feel the trade will take some heat. Have my game plan updated, may need to cut and roll or add extra butterfly sooner than originally planned. Would be in worse shape if it didn’t have the extra long MAY call that I added Yesterday.

04/22 Daily Summary

What a wild day!! NDX was trading at 2001 some point intra-day, and rallied all the way to 2047! This is not captured on the daily chart, but it happened nevertheless. One thing I’m now doing since I started to focus on one trade a month is to really document my next steps, what are my expectations of P/L and my game plan. See the detailed chart on the NDX trade.