March 27, 2011 Trade Update

Hi All,

Sorry for the lack of postings last week, it was an incredibly busy week and there were no changes until Friday.

Since Friday was 55 days till May expiration, I entered the May 55 day trade late in the morning which worked out well as the market backed down and put in a bearish candle for the day. The position is shown below:

The April 55 day trade is doing excellent so far. It is currently up about $1900 which well exceeds the $1500 profit target. I intend to stay in this as long as it makes sense. I am concerned with an up move from here but as you will see, I hedged it some with the method 15 trade. Below is the current April 55 position:

I let the April M15 go further than I should have before adjusting so it is down about $350. Since I was concerned about an up move with the 55 day, I rolled the 780 put butterfly to an 810 and added an 860 call butterfly…all 50 point wings. This put the position a little more positive delta than I would like, but again, it works for my overall position. Below is the April M15:

Hopefully the market takes a rest for about a week and we can exit the trades early this month.

That’s it for now, happy trading!