09/01 MNX Iron Butterfly

Volatility hit the trade quite a bit Today. I had contingent orders that took care of the deltas as priced went down, but I think the volatility increase hurt the position more than the price movement Today. On the positive side, the Theta is increased, so it should be able to recover if we stay quiet for a few days.

Previous Posting:

08/31 MNX Iron Butterfly

08/31 Daily Summary

Today's price action was beneficial to the portfolio! I have reached the +10% on both my iron butterflies and the IBM didn't suffer that much with the retreat.

One thing I'm wondering is how to control the increased gamma exposure on my RUT Iron butterfly, I think it was caused by my 2nd butterfly being short the 590 PUTs. I'll send a quick email to Dan Harvey and ask for his input.. I was considering giving up some of the theta and do a strangle to cut the gamma down, let's see what Dan says.

Position's Details:
08/31 IBM Calendar
08/31 RUT Iron Butterfly
08/31 MNX Iron Butterfly

08/31 IBM Calendar

IBM pulled a recovery by the end of the day, I still have the extra 2 calendars to open on the 115 level if it proves to be needed. Other than that, if we stay there or move up a bit I should be taking profits.
Previous Posting:
08/28 IBM Calendar

08/31 RUT Iron Butterfly

Nice! I'm glad I didn't flatten the deltas out last week, also glad I held on to the 650 Calls, rolling them up would leave me little room to the downside. Now, the only concern at this point is my gamma, it is increasing a bit too early on the trade.

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08/28 RUT Iron Butterfly

08/31 MNX Iron Butterfly

Things are looking great for the position, this market retreat came in at the best possible time. Better than that will be if we trade sideways here, reducing the volatility and increasing profits.

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08/28 MNX Iron Butterfly

08/28 Daily Summary

The markets are pretty much in an undecision pattern, Today's new high was quickly followed by a wave of selling that pushed prices lower by the end of the day.

I've decided to not touch any of my Iron Butterflies, I did take some of the contracts off the IBM Calendar.

Position's Details:
08/28 IBM Calendar
08/28 RUT Iron Butterfly
08/28 MNX Iron Butterfly

08/28 IBM Calendar

My gut feeling tells me IBM is heading lower. I took 2x 120 Calendars off the table for a slight profit and am getting myself ready to release them as 115 Calendars if needed. For now, that was all I needed to do to keep myself relaxed going through the weekend.

Previous Posting:

08/27 IBM Calendar