We’re making some changes to our monthly review – hopefully the structure of this new format will make it easier to follow along and compare our strategy with the relevant benchmarks. Going forward, we’ll include the following items in each monthly review: 1) a quick-glance overview of our monthly performance, in the chart at right; 2) a performance comparison of our positions for the month vs. the SPX, DJIA, and RUT, plus BEP, which is an S&P 500 Covered Call…
Saturday, April 26, 2008
What should you do when the underlying moves against an iron condor position you have open? (For example, if you’re a member, you may have noticed that one of our DIA trades for May expiration is looking threatened by the recent price action in the index.) Any time this situation arises, people will always write in to ask about how they can “adjust” or “fix” the trade if the market continues to be uncooperative. It’s an understandable impulse to want…
Thursday, April 10, 2008
Sometimes, you’re making a completely reasonable request, and Mr. Market decides to be an obstinate jerk. Yesterday afternoon was a great example of this: we were routing some ordinary, run-of-the-mill spreads, and trades that normally should have been filled right away at the mid price (halfway between the bid and the ask) just sat there, even after a morning of easy trading. Market conditions have a lot to do with it: generally speaking, faster-moving markets will be more difficult to…
Friday, April 4, 2008
The unemployment and nonfarm payroll numbers have just been released, and they were worse than expected. Reaction in the futures was negative: just seconds before the data was out, Dow futures spiked to +70, and are now sitting at about -20. Rick Santelli (the only credible person on CNBC): “This is the worst headline jobs number since March 2003.” But as we mentioned last night, even though there’s a lot of chatter about how important these data points are, implied…
Saturday, May 17, 2008
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