December 26, 2011 Trade Update

Hi All,

I hope everyone who celebrates, had a great Christmas and all others had a great weekend as well!

The market ground up pushing deeper into resistance levels all week with relatively low volume as is to be expected coming into the holidays. This week should be an interesting one with the technical levels where they are, coupled with expected low volume, as it may not take much to make a relatively large move in either direction.

I made an adjustment on the January M3 on Friday afternoon. I sold one of the 3 –  690 butterflies and rolled it up to 710 and added one 710/720 call vertical. I’m looking for a chance to get out of this for a profit over $800. This would only take a mild pull back and/or for the market makers to cooperate a little so we’ll need to see if we get that chance. The position is currently up about $500 and is shown below:

The January bearish butterfly has been toying with the 750 adjustment level for a while now. The Delta is fairly high on the position which could be good, or bad depending on which direction the market finally decides to go. If the market comes down, I will take either the low or high profit target depending on timing and if it goes up, we are in for a fight. The position remains the same. It is up about $600 and is shown below:

And last, I entered the February bearish butterfly by buying 2 – 670/720/770 put butterflies and the position is shown below:

That’s all for now, happy trading!

John