September 2011 Expiration
September Expiration’s commentary on Wins and Losses:
This month we took a necessary loss to put us back onto firm footing. We saw really serious gaps up and down last month, and we were left with a couple holes that we had to fill. Luckily, with our strategy, these shortcomings are significantly less than other services, who simply didn’t have an answer to the wild swings that we have gone through in the past months.
As a matter of fact we are constantly reminded that we are literally the only service who’s pics actually do better if there are unexpected movements in the market!
Here is how we ended this month:
This trade represented the biggest loss to our our portfolio! Unfortunately, there wasn’t a market for the 82.5 Puts, so that we could mitigate the loss by rolling over the position. Had we been able to rollover the position, we would have extended the hold on the entire spread, and been profitable in the following month. But there is no use crying over spilled milk. However, by playing out these positions throughout the last session, we were able to identify a key factor which previously impeded our contingent orders. To wit, together with a new partner that we added this month, we have refined a better contingent order strategy. So we say thanks and godbye to this trade!
This was a particularly dificult security to trade! We were taken on a quick ride to the upside in the previous session, but the security still stayed in our predicted range. This allowed us to take some quick profits on the 110 Calls. We went in again for another round on the 110 Calls, to mitigate the loss on the 115 Calls and also made some money on these Calls. However, we rolled this position to the following month’s expiration to “Leg Into” another Iron Condor for the next expiration month. The 77.5-67.5 Puts expired nicely, so we were 100% profitable on that spread. This trade is still being processed and should be profitable again in the next expiration period.
MCP:
MCP gave us another gift this month! We were simply waiting for this security’s option spreads to expire, and we came out with a profit. This security stayed within our predicted range the whole time, so we simply allowed the time value on the 45-35 Put spread to run out.
That’s all the commentary for now, till next month’s expiration! This month was simple “House-Cleaning!”
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