added 4x Sep 84 Puts. plan to add 2x more but maybe not today. So far the game plan is: 1) create -12x/-12x July Puts/Calls and +12x Sep Puts (long) to create a core position with a defined downside risk. 2) incrementally (e.g. 2x at a time) add/remove July Puts or Calls trying to catch market swings. This will temporarily unbalance the position somewhat but the change in risk will be small. I am assuming 30K account for these trades (the actual account is somewhat larger but it contains other independent positions). The max loss i am willing to incur at this point is ~8K (~2x gains from June strangles). No stops are used, instead the position is actively managed depending on the market behavior.
no more trades today. the bull has eaten some of the unrealized PL since yesterday. ideally, i would like to wait for some sell-off to remove excessive short calls: EOD update:
no trades so far today. i have pending orders to close several short calls. i may regret placing the orders too far away from the market. midday update June 30:
took advantage of the beautiful drop today to balance the position: covered 4x 90 Calls (@2.21, + $656 realized ). July 02 midday update:
covered 4x 92 Calls (+ $652 realized). total realized for today + $1,278. what remains seems to be a quite stable position market-direction-wise. EOD update: Have Fun on 4th of July! (for those who celebrate)
covered 2x 83 Puts during the morning drop (+ $129 realized). i will reduce short exposure further if we drop more today. VIX is spiking and we are getting oversold. midday update July 06:
Added -2x 90 July Calls a few minutes before close. now I am in a wait-and-see mode. EOD update: P.S. Goldman Sachs' secret code has signalled to Buy Any Dip Tomorrow. Shortie Aleynikov Out