Trade Summary

  1. This trade went through the weekend without much movement. Theta had helped generated the profit.
  2. Another reason for the profit was I manage to buy the FLY at a lower debit.
  3. Net profit for this trade is $74.18. It looks small but consistently generating winning trades is what I am aiming for right now.

29 Nov 2016 – Day 1

  1. 51 days to expiry. RVX was at about 19. Managed to buy the Fly for $9.50, slightly cheaper than the usual $10.00.
  2. Lesson learnt from the previous Fly trade, I have also bought the IWM Long Call for $1.86 to neutralise the negative Delta from the Fly which is 20 points below ATM.
Risk profile on Day 2 – 30 Nov 2016.


6 December 2016 – Day 8

  1. No adjustment needed for this trade. RUT was more or less trading at the same level as when I entered the trade.
  2. But today it looks like it was going to move closer to my breakeven point, so I decided to take the profit instead make adjustment.