December
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Nov 7 | RUT | IronCondor | 640/650/800/810 | Both | Dec 16, 2011 | 3.75 | 2.50 | 20.00% | closed for 1.25 net credit. |
Strong earnings reports and domestic economic data dueled against the European debt crisis in a battle that saw huge daily swings in trading activity. In the end, we exited for a nice gain as the markets bounced along within a fairly tight range.
November
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Oct 10 | RUT | IronCondor | 580/590/760/770 | Both | Nov 18, 2011 | 3.70 | 5.00 | -20.63% | closed for 1.30 net debit. |
The markets continue to take cues from developments in Europe. Reassurances of a comprehensive plan to handle the euro zone financial crisis helped to vault the markets upward in addition to positive corporate earnings. Unfortunately, this upward movement wasn't followed up with a significant sell-off. The markets gapped up, breached our exit trigger, and forced our hand. We recognized the need to make a swift exit, and followed our rules to minimize losses.
October
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Sep 12 | RUT | IronCondor | 580/590/755/765 | Both | Oct 21, 2011 | 3.85 | 2.50 | 21.95% | closed for 1.35 net credit. |
The VIX was sky high allowing for a wide range for our spreads within which the markets could trade without endangering our short strikes. Investors were put on a roller coaster ride as Europe struggled to provide clarity about looming debt worries. The Federal Reserve expects operation twist will help ease some economic strains and investor fears. Amidst the chaos, we closed down our position for a nice return.
September
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Aug 11 | RUT | IronCondor | 590/600/745/755 | Both | Sep 16, 2011 | 3.75 | 2.50 | 20.00% | closed for 1.25 net credit. |
A boost in the markets, in light of positive economic data after we opened our position, eventually gave way to four straight losing sessions the following week. S&P downgraded the U.S. credit rating and spurred investigations into how exactly it arrived at that conclusion. The quake that shook the east coast did little to bring the markets lower as positive global economic data took markets even higher. We closed down our position for another positive result this month.
August
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Jul 11 | RUT | IronCondor | 780/790/880/890 | Both | Aug 19, 2011 | 3.65 | 4.60 | -14.96% | closed for 0.95 net debit. |
The European financial crisis, as well as domestic budget issues, continued to weigh on investor sentiment. We were forced to close down our position for an acceptable loss having been pushed to our limits. We saw the markets turn 180-degrees and head back upwards moving away from our short strike on the Put side after President Obama commented on renewed efforts of cooperation between Republicans and Democrats to raise the debt ceiling. Some might question the move to exit but we must realize that when in doubt, we have to take the route that would clearly avoid total disaster.
July
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Jun 6 | RUT | IronCondor | 760/770/860/870 | Both | Jul 15, 2011 | 3.60 | 2.30 | 20.31% | closed for 1.30 net credit. |
Overseas issues dragged on the economy as recovery efforts of sorts continued in Japan and in the euro zone. News that Prime Minister Papandreou won parliament's vote of confidence, which may help Greece avoid sovereign debt default, boosted the markets and we exited comfortably for another gain.
June
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
May 10 | RUT | IronCondor | 790/800/885/895 | Both | Jun 17, 2011 | 3.75 | 2.50 | 20.00% | closed for 1.25 net credit. |
The lagging energy sector coupled with the European financial crisis saw to a sell-off that nudged the short strike on our Put Spread. Equities once again climbed upwards with a bit of help from the materials sector. With volatility on the rise we closed down the position to lock in profits the first opportunity we saw.
May
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Apr 13 | RUT | IronCondor | 770/780/870/880 | Both | May 20, 2011 | 3.50 | 4.50 | -15.38% | closed for 1.00 net debit. |
There was no respite as strong earnings reports and positive economic data exceeded expectations and muscled the RUT high enough to bully our Call Spread, forcing us to exit quickly in efforts to preserve capital.
April
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Mar 10 | RUT | IronCondor | 740/750/860/870 | Both | Apr 15, 2011 | 3.60 | 2.00 | 25.00% | closed for 1.60 net credit. |
China's decrease in exports and spike in imports, unrest in the Middle East, and the major earthquake in Japan could only rein the markets in for so long. They began to go on a tear with the Dow crossing over and trading above the psychological 12K level, due in large part to a reported increase in Q1 GDP over Q4 gains. We closed down our position having easily met our profit goals for the trade.
March
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Feb 10 | RUT | IronCondor | 750/760/850/860 | Both | Mar 18, 2011 | 3.50 | 2.20 | 20.00% | closed for 1.30 net credit. |
Revised economic growth outlook from the Federal Reserve as well as strong earnings reports helped buoy the markets and tested our spread on the Call side. The VIX spiked on the 22nd and the RUT shed pretty much all its gains from the week before. This put us in prime position to shut down our position and lock in our profit.
February
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Jan 10 | RUT | IronCondor | 720/730/830/840 | Both | Feb 18, 2011 | 3.60 | 2.40 | 18.75% | closed for 1.20 net credit. |
A mixed bag of earnings reports and economic data had the RUT trading sharply higher and then lower. Despite that, it remained a safe distance from our short strikes allowing us to close out our position after hitting our profit goal.
January
Open DateDate we would have opened this trade. | UnderlyingUnderlying security | Trade TypeTrading strategy | StrikesStrike prices | Option TypeCall or Put | ExpirationExpiration date | CreditAmount we would open trade. | DebitAmount we would close trade. | ResultPercentage this trade would have earned. | Trade NotesSpecial notes regarding this trade. |
---|---|---|---|---|---|---|---|---|---|
Dec 13 | RUT | IronCondor | 730/740/820/830 | Both | Jan 21, 2011 | 3.50 | 2.25 | 19.23% | closed for 1.25 net credit. |
The markets turned bearish sending the RUT to a low of 767 the week we opened our position. It then turned around and climbed to a high of 793 on positive employment data, tapering off to trade a tight range until we closed it down for a profit.