December 21, 2010 Trade Update

Hi All,

I adjusted the January 55 day butterfly again today. I sold the 4 – 760 butterflies and rolled 3 of them to 780 and one to 790. I currently have 3 – 730/780/830 put butterflies and 3 – 740/790/840 call butterflies. The position is currently down about $1900 and is shown below.

I also did a modified entry on the method 15 and entered at with 800 shorts by buying 2- 750/800/850 call butterflies. I did this to help protect the overall portfolio against a continued up move and will work this trade above the market to offset the 55 day trade. The current position is below:

And last I entered the new trade we will be following which is a version of an SPX butterfly, on the SPY. We will call it the HF SPY Butterfly. This trade starts as a butterfly and gradually adjusts out to a condor. It is supposed to start 35 days till expiration, so we are getting in a little late. I will describe this trade in future updates but for now, here is our opening position:

That is it for now,

Happy Trading!