July 27, 2011 Trade Update

Hi All,

Big move down in the markets today.

I stated in the July 22 post  ” I’m also watching the Aug 55 and will pull the plug on that one for a small gain if it gives me down side problems.”  Well… I almost pulled the trade yesterday but decided to see what today brought and it was more of the same.  So with the continued down move at the open and the fact that I was leaving to spend the day at the beach 🙂 , I decided to ahead close the Aug 55 position.  The result was a $810 gain after commissions on a total investment of $5122.  This comes to a 15.8% profit on invested capital or 16.2% profit on our planned capital of $5000.  This is only 1/2 the profit target but considering this trade was close to max loss before the pull back, I’ll take it!

I adjusted the August M15 trade at the same time as that trade was feeling some down side pressure as well. For the adjustment, I simply rolled the 780/830/880 butterfly back 10 points to 770/820/870.  The position is currently down about $150 after the close. The position is shown below:

The Sept 55 is doing well, it is currently up about $350 and flat Delta. Position is below:

And last, but not least, the Sept M3 trade.  A hard down move the day after you put this on is NOT what you like to see in this trade but that is exactly what we got. Despite the down move however, the trade is only down around $100. The position is shown below:

That is all for now, let’s hope for some relief tomorrow!

Happy Trading!