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Tom's Trading Update for August 29, 2014
I wrapped up the week net positive profit. The 6E futures options (EURUSD) are down as the EURUSD fell and it is a bullish position. Fortunately it is over 70-days to expiration so it is nice and wide. The EURUSD nearly hit a 1-year low today so We'll see where it goes next week.
My SPX trades are all doing fine. Nothing to do but wait for all three of them.
Enjoy the video!
The Round Table with Amy Meissner Replay
Amy Meissner, “the Queen of Iron Condors”, presented her Nested Iron Condor strategy tonight. Amy's results clearly show that iron condor traders have struggled in the last year or two but the returns are still good.
Enjoy the replay!
Tom's Trading Update for August 26, 2014
I added three new trades today:
- New 6E futures options trade (Weirdor type of trade)
- New SPX options trade, DEC expiration butterfly
- New SPX options trade, SEP 19 expiration broken wing butterfly
I reviewed my essentially closed Sep 13th trade. It has zero margin and has a guaranteed profit of $1222.
Enjoy the video!
The Round Table with Amy Meissner
Amy Meissner will join us on Thursday's Round Table to discuss her nested iron condor strategy. Amy was written up in Technical Analysis of Stocks & Commodities magazine as the “Queen of the Iron Condor.”
Tom's Trading Update for August 22, 2014
SPX closed higher today. I sold the 2005 call for $2.10 more than I bought the 2000 call today, so I now have a bull call spread put on for a credit!
Enjoy the video!
The Round Table: SPX Broken Wing Butterfly and VXX/UVXY Trades
The Round Table meeting had two parts. Tom showed the SPX Broken Wing Butterfly trade he's been trading. Then Jim showed his VXX and UVXY volatility based trades he's been doing.
Tom's Trading Update for August 21, 2014
SPX closed higher today. I sold the 2005 call for $2.10 more than I bought the 2000 call today, so I now have a bull call spread put on for a credit!
Enjoy the video!
Tom's Trading Update for August 20, 2014
SPX closed higher today. My extra long call helped and is looking great if the market keeps going higher. The trade is profitable and looking very good at this point.
Enjoy the video!
Tom's Trading Update for August 18, 2014
I closed my trades so I'm flat at the moment. The three primary reasons were:
- The trades were bearish butterflies and the market had moved to the large “tent” area, which meant Gamma was increasing and the T+0 line was bending down. The farther down the market goes, the worse the Gamma problem becomes with this trade.
- The Average True Range (ATR) of SPX and ES futures keeps increasing. The last two trading days, SPX had 25 and 23 points of intraday movement with the ATF over 16. Combining this with the Gamma problem means adjustments are frequent, which always hurts your profit.
- The losses were small so repositioning the trades makes more sense. The trade is not one I would put on now which is another reason to reposition the trades.
Tom's Trading Update for August 8, 2014
I closed my trades so I'm flat at the moment. The three primary reasons were:
- The trades were bearish butterflies and the market had moved to the large “tent” area, which meant Gamma was increasing and the T+0 line was bending down. The farther down the market goes, the worse the Gamma problem becomes with this trade.
- The Average True Range (ATR) of SPX and ES futures keeps increasing. The last two trading days, SPX had 25 and 23 points of intraday movement with the ATF over 16. Combining this with the Gamma problem means adjustments are frequent, which always hurts your profit.
- The losses were small so repositioning the trades makes more sense. The trade is not one I would put on now which is another reason to reposition the trades.