01-12-10 Trade Update

The market was flat on Monday and no adjustments were made to any of our positions. The lack of movement was great for our trades. As for today, RUT was pushing down a little and considering we are really close to expiration and the 30 Day Method 15 was up over 10%, I decided to close the trade. I ended up taking a $753 profit on 6511 investment or 11.5%.

On the Method 1 trade, early in the day when it appeared the market may drop, I sold off the 650/660/670 butterflies that we bought for protection on Friday to allow for more profit in the trade. As of right now, the trade is at about break even. A small move up tomorrow and we should be able to eek out a small profit. The current position looks like this:

The February 55 Day Trade is only 1/3 entered so far as the market has not gone up enough for us to get in the rest of it yet. The frustrating part is that the market has not backed off enough to get up enough money to lock the price in the tent either, so for now we wait. What we do from here depends on what the RUT does. Best case right now is a short hard burst up to 670 followed by a pullback to 640. Next best thing would be if we get a 30 point sell off and lock the price under the tent. Here is the position:

As for the February 30 day trades, I’ll be looking at entering those toward the end of the week. I’d like to see the RUT bounce a little before entering them but either way by they will be entered by the end of next week.