WHAT HAPPENED?

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.