We’ve finally got our downside movements. For some strange reason I had some great timing on removing some of my upside hedges that I put on before the AAPL and FED meetings. I got rid of them @ RUT 1152-1154 area and a few more around 1145. The trades are now sitting in a position where they should be able to gain some profits on the way down and if we continue up, then we’ve gained some theta and I’ll look to make the appropriate upside hedges.
We’re at an important juncture right now: This is what I am looking at.
Yesterday was a bizarre day, the BOJ caused a sell-off at night and the market opened and filled its gap and went green for the day despite the bad news. Then we had Icahn dump 2Bln worth of AAPL stock which apparently was the catalyst to move the markets down. The day ended at RUT 1140 as compared to its touching 1154/1155 area (where I dumped my upside hedges :P). Today it’s hovering around 1134 and any move to 1120 will be welcomed and profit turning for the June trades. I’ve still got May trades on but they’ll only be slightly profitable unless we go below 1100. I might start looking to close soon and open up some Julys with the increased volatility (if I can get a good price, I am not paying as much as I did in June, I was fighting an uphill battle there).
I’ll update the blog with the trade images at EOD.