Nov 23 – trade update

The RUT outperformed today moving up nearly 0.80%. I removed some lower BFs’ on both the M3 and what’s left on the Rhino trades. I’ll be closing all of these trades before Monday and move into Rhino trades for February expiration. With the OV issues etc, I might not enter any more M3s. I feel much more comfortable with the Rhinos and I’ll add some bearish butterflies. Anyways, it has been a great month for the trades and I am looking forward to entering the February trades.

I did actually get 4 units on for February 1190/1150/1100 for $2.54. It’s a bit early but with the thanksgiving break coming up, I wanted to get some safe theta over the break and I had GTC orders that filled. The regular entry day would be next week on Thursday. However, I scale into my positions as I usually go with a lot of units.

Here’s what my trades look like. I don’t have exact P/L numbers yet because I had to switch to an old VM that had an older version of OV installed. Still not 100% confident in the M3 trades at the moment.

M3 #1
Screen Shot 2015-11-23 at 4.54.05 PM
M3 #2
Screen Shot 2015-11-23 at 4.54.16 PM
Rhino #1
Screen Shot 2015-11-23 at 4.54.36 PM

2 thoughts on “Nov 23 – trade update”

  1. Hello There,

    Great Trading! I see that you trade both the M3 and the Rhino, aren’t they in essence very similar i.e. you want market to go down, but if it goes up you can still profit but not as much. It appears the Rhino is more hands off than the M3 and yet the P&Ls are similar, i.e. what is the benefit of continuing to trade M3, why not just trade Rhinos.

    1. Hi Al,

      Though similar in some respects, I do find them quite different. The Rhino does very well before reaching 21 DTE whereas the M3, I find you have to get right up to expiry (like I am now) dealing with big gamma issues and constant small adjustments. I much prefer the Rhino. It’s got more resilience to the downside and since its setup to be closed before 21 DTE and is by nature low gamma, it’s much easier to manage. I am moving to only be in Rhinos, bearish butterflies and M21 based trades (using rock, m3 and BBs but via an analysis of the market re technicals and a proper plan for every situation). Even with the recent M3 I had on, I was adding in call BWBs and Call calendars to hedge the upside delta issues (no longer an m3).

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