Volatility is the enemy of Income Spreads. After we opened our March position on Feb 11th the S&P made a whopping 78 point move over the next 28 days. We can adjust around the majority of Market moves but occasionally we hit our limit. This most often occurs to the downside but sometimes the Market can "Melt Up" as well. Our March position got caught in one of these up moves. We were left teetering at the edge of our max stop loss with the daily threat of a breakout into a blow-off rally. After a day or two of this action with no pullback in sight and Gamma sky high I decided to close the trade rather than risk going beyond our stop loss into a really ugly situation.
Thursday, March 11, 2010
Wednesday, March 10, 2010
TRADING SYSTEM SIGNAL - CLOSE THE MARCH POSITION
We have unfortunately hit our stop probably just before this Market rally corrects. So as much as it pains me we must close the March Position.
Thursday, March 4, 2010
Tuesday, March 2, 2010
UPDATE
Since the Market has made a new high today we'll continue to adjust into the move.
Open - 2 Apr/Mar 116 Call Calendars for about $0.64
Close- 2 Apr/Mar 105 SPY Put Calendar for about $0.62
Monday, March 1, 2010
UPDATE
The Market has rallied above the 111 resistance area and it's time to adjust our position.
Open - 1 Mar 110/114/118 SPY Call Butterfly for about $01.62
Close- 2 Apr/Mar 105 SPY Put Calendar for about $0.71
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