August 15, 2011 Trade Update

Hi All,

We’re still getting huge daily moves in the RUT!  3+% just today.  The directional trades who are in the correct direction are loving this! Us market neutral traders, not so much, but our time will come!

Today, I had to make a choice on whether to add risk to the Sept 55 day trade or to take my money and call it a day. I decided to take the money. The trade ended up making a whopping $532 and that is only because I cheated by adding TWM, the ultra inverse IWM ETF, and the timing happened to be right. If you recall I added TWM on the last big down day of the sell off and sold it at the end of that same day. This is the reason for the large capital level in the trade. The maximum investment in the trade was $13929 which makes the return on investment was 3.8%.

As you may recall I am not trading the September method 15 this month so the September trades are done and it is on to October!

Speaking of October, I entered the October M3 trade last week and forgot to post it. The trade was entered on 5/11/11. When I entered the trade, I bought the wrong call, so later in the day the incorrect call was sold and the correct one purchased. The current position consists of 2 – OCT  590/640/690 put butterflies on RUT and 1 OCT 45 call on IWM. As of today the position is WAY past its adjustment point but since it is so early in the trade, Delta is flat, Theta is +, Vega is – and the position is up $150, I’m going to give the market a chance to settle before making an adjustment.

Below is the current position:

That’s it for now, happy trading!