June Rhino M3 Trade Update

Been a while. I’ve been traveling and when I get back its insane catch-up mode and I always tend to leave this blog behind,regretfully. I just got back from a 3 week trip which included a week in Barcelona, 2 weeks cruise in the Canaries and Madiera as well as a quick stop over in London and Toronto.

The trades for June are underwater as the relentless 22% rise in RUT is exactly an environment which does not allow a Rhino to profit much. Been a frustrating year but no mistakes were made and the trades are behaving exactly as they should, they just aren’t profiting. That’s expected. If you look at the SPX chart (RUT is even more pronounced!). It’s an environment which in backtesting or in live, will not make money and should be slightly negative. That’s where we are. In June (as you can see below) any 2-3% pullback will bring us well positive. Just a patient waiting game. The year will end well, I am confident in that as I don’t think we’ll have another 20% run up, and anything else is great 🙂

I was hoping the unsuccessful DOHA and the Saudi threat of selling treasuries would bring the market down more than 1% this AM but it doesn’t look like that will happen. Today, I am looking to add some call BWBs to my June trades to reduce negative deltas and add theta and a tent to the right side of the trade.

IMG_1282
This chart says it all, this is just not an environment (since Aug) that would be a good one for market neutral trades. It’s, in fact, probably one of the worst. Patience is key. I am trying to exercise it.

Rhino M3 Trade (M)

Screen Shot 2016-04-18 at 8.15.47 AM

I’ll be looking to add 20x 1100/1150/1180 call BWBs to this trade to reduce negative deltas

Rhino M3 Trade (D)
Screen Shot 2016-04-18 at 8.15.37 AM

I’ll be looking to add 10x 1100/1150/1180 call BWBs to this trade to reduce negative deltas

Rhino M3 Trade (P)

Screen Shot 2016-04-18 at 8.22.08 AM

looking to add 20x 1100/1150/1180 call BWBs to this trade to reduce negative deltas

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