05-02-10 Trade Update

Hi All,

It has been incredibly busy and will be over the next few months, I’ll likely cut the trade update down to once a week.

We finally got some downside action in the market this week and the implied volatility temporarily is hurting all the positions. Unfortunately, I did not stick with the plan on the 55 day trade and that hurt the position quite a bit. Had I followed the plan I’d be near break even, since I did not the trade is still down $1100 or so. There have been no changes to the position:

The Method 1 also is unchanged and is down a few hundred:

The May Method 15 is another trade that I did not follow my rules on this month and it cost me. As you know I rolled up the 700 butterfly to 730 the week before last as I was real bullish. Last Tuesday when the market was below 730, I rolled the 730 back to 720. On Friday when the RUT went under 720, I rolled the 750 back to 730. Currently, the position is 2 50 point wide butterflies, one at 720 and one at 730. The position is down around $650 vs $380 if we followed the plan:

The June 55 is up slightly. Normally it would be up a lot but since we overpaid for this to start with, we only have $80 after the IV pop. Position below: