I am fully out of the November trades at 3.2%. Not the best result but not terrible given the incredible movements we’ve seen during the trade. I believe we started it when RUT was at 1080 and we saw it touch 1200 and revert back down to 1155. I think I could have closed it at about 5-6% around 21 DTE. With my M3 trade types, I’ll probably take 6%+ at 21 DTE rather then trade closer.
The December trades are doing great now. I closed my Bearish butterfly at 20% and the RHINO is approaching its profit target of 10%. The other trades are all around 3-5%. This time around I’ll be closing them before next Thursday (21 DTE) and I’ll start entering some January M3s and some February Rhinos. I’ll be protecting the upside quickly this time around. If it looks like we’re starting the santa rally, I’ll be flattening my upside. I was somewhat reluctant to do it too quickly today but tomorrow and the following day I’ll be watching. This week is November OPEX and we’ve been rallying into opex lately and also, Nov 20 to Jan 5 is the period known as the Santa claus rally period. I’ll do this by removing some lower butterflies, adding calls or adding put credit spreads.
Here’s the RHINO I’ll probably take off in the next day or two at profit target (25k).
I tend to leverage quite a bit and I noticed on one of my accounts the amount of margin needed as trades approach expiration drastically increases. Something I’ll be taking into consideration for next month. I had to transfer funds from another account in to cover the margin when the RUT experienced big volatility spikes last week and as expiration in Nov approached. I went from having 50% of the funds available to being in a margin call situation. Anyone else that uses PM should take note of that. That said, I had like 1/5th the planned capital available in that single account.