September 23, 2011 Morning Trade Update

Hi All,

Big move down in the markets over the last 2 days.

I made some adjustment yesterday as well as entered some November positions.

On the Oct m3, I removed one of the 680 put butterflies and the 45 IWM call. This position is back to the normal size now but is spread out. It has a 660 butterfly, a 680 butterfly and a 49 IWM call. The position shows that it is up $500 + which I’d be happy to take given the current market conditions but the market makers would not take my orders yesterday at the prices I wanted. I’m hoping for a bounce sometime today so I can get out over $500. The current position is below:

The Oct 55 day trade was adjusted as well, I simply removed the 700 put butterfly and am now in a single 680 put butterfly. This trade shows that it is up $900. I’d be willing to take $1000 at this point which I should get if the market bounces and vols lighten up a bit. The position is shown below:

I also entered the November M3 trade yesterday. I bought 2x 580/630/680 put butterflies and 1x 42 IWM call. The position is shown below.

And last I entered the November 55 day trade as well by purchasing a single 580/630/680 put butterfly. Please be aware yesterday was not a good day to enter this position because the markets are at support and likely to see a large bounce, however I decided to give it a shot anyway as it will be a good way to demonstrate how to deal with the volatility. And who knows, maybe the markets will break support which is sure to get interesting as well. The position shown below:

That’s it for the positions. A large move that holds in either direction today could be an important technical indicator on the longer term direction of the market as we are at major support levels. so pay attention.

I’ll update with any changes, otherwise, make it an awesome weekend!

John