September 24, 2010 Trade Update (premarket)

Hi All,

Yesterday morning the market gapped down and then staged a rally in the morning. When the market was up yesterday and it looked as if the market was going to continue to rally, I decided to reposition and add to the October 55 day trade and to add to the October method 15 trade. Of course, I was questioning my decision to do this when the market pulled back pretty hard yesterday afternoon but I feel better about it now since the Russell looks like it will gap up about nine points on the open this morning. Only time will tell if my move yesterday was a good one or not.

On the October 55 day trade, I sold one of the 630 butterflies and purchased three 630/680/730 call butterflies, so as the position sits, it has three 630 butterflies and three 680 butterflies. The position before open is down $710 and as shown below:

On the October method 15, I simply added two 630/680/730 butterflies to the position. I meant to add call butterfly’s but accidentally bought put butterflies and crossed out some strikes, errrr! For the purposes of the website trade, I’ll pretend and trade it as if I purchased call butterflies in order to keep things simple. The profit and loss will be the same but the margin requirements may be different with think or swim’s “new” margin requirements. The position at about breakeven and is pictured below:

The October method one trade has not been changed it is up a little, at least until market opens 🙂 , and is pictured below:

I have decided not to enter the November trade yet. I may do so late this afternoon or early next week depending on what the market does today.

That’s it for now, happy trading and make an awesome weekend!