05/21 Daily Summary

Being fully aware we’re still in the midst of the storm, I’ve initiated my JUN position Today. My key assumption and expectation is that things are about to settle down and when the dust settles I want to get out of there with the profit target. I decided against sitting out this month simply because it has been my experience that for these type of strategies you can’t really know when they’ll work and when they won’t.. You just have to trade consistently and manage whatever comes your way. So, let’s get ready for the JUN ride. May it be a good one :)

05/21 NDX Iron Butterfly – JUN/10

Started the position Today, instead of using the regular extra long, I’ve opted for having one of my contracts set up as a broken-wing butterfly, moving the long call closer to the short call, therefore getting the extra positive delta but with a bit more theta than I would have if I had with the extra long call. Will post further details on adjustment and trade plan over the weekend.

5/19 Daily Summary

I'm glad the order I had Yesterday didn't fill. I was pushing for a fill at a higher price to compensate for the risk of having an order without knowing where the NDX would be trading at. As I write this we are moving about 40 points down and the volatility is going higher. I will then wait for end of day to jump in.

Cheers!
Gustavo

5/19 Daily Summary

Sorry, can't post my daily summary chart Today. I'm in Munich and on my way back to San Francisco, just wanted to get re-started on the blog. Looking to add my JUN position either Today or Tomorrow. I have floated an order to enter the trade once the market opens Today, if it gets filled great, otherwise I'll have the position early morning Tomorrow. So far looking at the 1875/1800 puts & 1925/2000 calls, keeping an eye on the donw-side once again this month. I won't add the extra call unless it triggers at 1910 (actually, first it needs to trigger the butterfly order, then the contingent).

Cheers!
Gustavo

05/13 Daily Summary

Still a very choppy market environment, a 1 day standard deviation looks like nothing these days.. On the bright side, the 5 day vol spike chart may be showing some sort of consolidation is starting. That’s what I’m hoping for, as we enter the “hunting” season for JUN contracts.. I will be traveling to Europe next week, so may not be able to post for a few days. Plan on starting a position from there though, likely to enter on Tuesday. Cheers! I closed my accounting for MAY, ended up making a very thin profit, that was AWESOME considering such a wild ride!

05/12 Daily Summary

Sorry I have been out of touch lately, got into a busy period at work. Actually I’m glad my position has been closed, as I wouldn’t have a whole lot of time to dedicate to it. Back on the 11th I closed the short call spread and sold back all my remaining longs when NDX traded at 1960. This was done through contingent orders. For now I’ll kick back and relax until we get into the JUN cycle.

5/10 Daily Summary

Not much to say Today, except that with this sort of price action going on I might just spend the extra money to close my last short call. Don't have much time Today, but will post any action I do Tomorrow.