Saturday, May 30, 2009

Adjusted TEVA

TEVA hit my upper breakeven intraday Friday, so I decided to do the adjustment I mentioned previously. I bought some 45-47.5-50 butterflies, effectively rolling my 45-47.5 credit spread up to 47.5-50. You can see the before and after overlaid in the graph below and how I moved the upper break even up a bit, as well as cutting my deltas.All other trades are doing well, although the run up prior to closing on Friday pushed SPX past my upper calendar at 915. A few points higher I may need to close my 850 calendar.

I also opened up a new high prob iron condor on RUT, short Jul 380 and 580. This is much earlier than I normally would start this trade (normally I don't start until 1-2 weeks from now), but I put on a fraction of my normal size and did this to just add a little time diversification.

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