SPX Adjustment

I just sold 2 contracts of SPX May 700 put at 0.60. Credit to the account = $120.

Current position looks very well today.

Total debit for the SPX position = $9,850 - $120 = $9,730

New SPX Calendar

I just bought 5 contracts of CALENDAR SPX 100 JUN 09/MAY 09 870 PUT @19.70 just before the market closed.

Total debit = $9850.

Covered SPX position

I just sold SPX option position at a credit of $17.90, with a total credit of 1790.

Total profit for this position = $1790-$1500 = $290

New SPX position for Monday 4/27/2009

I just bought +1 1/-2 CUSTOM SPX 100 MAY 09/MAY1 09 850/825 PUT/PUT at a debit of $15.00.

Total debit = $1,500.

closed SPX options

I just sold 1 contract of SPX May 750 put at $3.1.

Net profit for SPX trades = $310 - $190 = $120.

SPX adjustment

I sold 1 contract of SPX May 750 put at $6.5. Total cedit = $650.

Total debit of the SPX position = 840-650 = $190.

I love the weekly.

Using the SPX weekly options

I bought 2 contracts of SPX 100 MAY 09/APR4 09 750/800 PUT at a debit of $4.6 this morning, and sold 4 contracts of SPX APR4 750 PUT this afternoon at a credit of $0.2.

This is a short-term trade to bet on the downside.

Total debit for today = $840.

Where are we heading

We are still in a bear market. I saw distribution last week, and so my question is "where are we heading to".

We are going down hard. I think s&p 500 will hit 800 this week, and will be heading to 770. If we have a strong support at 770 and back to 800 next week. We will see 920 in May, and we will have a positive year.

What if support at 770 is broken? S&P will go to 653.

For now, it is not so meaningful to predict the future too far away. We will look at the price action when s&p gets close to 820, 800 and 770.

Option expiration April 2009

All April options expired today, and i have one May put option left. I left just one contract of this put option as a lottery ticket.

The monthly profit is the net credit of the portfolio, and the remaining long option.

Apri P&L = $1,270 + 1 contract of Rut May 380 put.

Closing all call position

The market is very strong. Investors are buying on every dip. To eliminate the risk associated with big upward movement, I just closed the last Apr/May 460/480 call for a credit of $5.1.

Total credit for the current portfolio = $1270

Right now, I don't have any upside risk, but i should have a black swan risk that is very unlikely to happen.

April 13, 2009 action

The upcoming earnings will have a big impact on the movement. To reduce the impact, I closed one contract of May 380 put at $4.3, and closed 4 contracts of Apr/May 460/480 call at $6.4

Total credit today = $2990

Total credit for the portfolio = $2990 - 2160 = $830

[edit] I sold another Apr 470 call and 2 Apr 480 call at a debit of $0.7

Debit for the trade = $70

Total credit for the portfolio = $760

I am trying to close all RUT options by the end of the day.

Gamma risk

The big movement hurt the portfolio a lot today. When it is close to expiration, the gamma risk increases exponentially.

I closed April 380 put at $0.25 today.

Total debit today = $25

April 8, 2009

The portfolio looks very good today. The current delta is close to zero.

The market is expected to go up with low volume tomorrow.

Taking advantage of pullback

With an increase of volatility today, I sold 1 contract of ES April 700 put at $1.4 and 1 contract of ES Apr 695 put at $1.1 with my future account.

The market is still bullish in my opinion. A pullback will neutralize the overbought conditon, and the market can go higher.

Total credit today (excluding commission) = $125
Total debit for the portfolio = $2,135

reducing gamma

The market is regaining the momentum for now. To reduce gamma risk, i just bought a bull spread Apr 470/480 at a cost of $2.8.

Total debit for this trade = $280

Total debit for the portfolio = $2260

position adjustment

Since we are closer to the expiration, we have to start managing gamma risk. Yesterday the momentum was very strong and so i made an adjustment to sell 1 contrat of RUT Apr 380 put for $2.10. Friday price action will determine how i should adjust my position next week.

Credit to account today = $210

Total Debit for the portfolio = $1980