July 2, 2010 morning trade update

Hi All,

We got another really good drop on Wednesday but I chose to hold off doing any adjustments until Thursday. Thursday morning, on the method one, I rolled the 650 iron butterflies down 20 points and doubled the size of the position. I opened four 610/630/650 iron butterflies. Currently the position is up about $80 in the capital level is at $1480. The position is shown below:

The July method 15 was rolled down another 10 points, I sold the 640 put butterfly and added a 580/630/680 put butterfly. Currently the position is up $265 on a capital level of $1750. The position is shown below:

The August 55 day position is still doing fine, I decided to add another 560/610/660 put butterfly. As with the last adjustment, I really didn’t need to do anything but I was thinking it was a good way to take advantage of the high volatility yesterday, while at the same time, flattening my delta out. I’ll likely drop this back to 2 positions if the Russell tries to go anywhere. But if things settle out and in this new range, the extra capital should make us a lot of money when the volatility drops. The position is currently up about $600 and is shown below:

Okay that’s it. I hope you all have a great Fourth of July weekend and I look forward to at the market brings us next week!