Trade Update

On Aug 28, a live trade was posted.  The trade was not a recommendation.  Instead it was an opportunity for readers to follow a position as time passes – and that includes deciding whether it's a good idea to maintain the position as is, adjust, or close.

UPDATED to correct my error (9:18 Central time).  It's one week and one day later, and as I write this, RUT is trading near 710.  The RUT November 620/630; 810/820 iron condor is essentially unchanged  because the mid-point between the bid and ask prices for the iron condor is $3.00 (we collected $3.15 to buy this position).

The position is delta neutral (short 0.5 delta per iron condor) and neither the puts nor the calls are threatening to move into the money.

We'll just leave this position as is.



3 Responses to Trade Update

  1. JB 09/05/2008 at 2:36 PM #

    Hi Mark,
    Thanks for the update on the trade (RUT November 620/630; 810/820 iron condor.) [see comment to you – your posting “Copycat trading” – Posted by: JB | August 31, 2008 at 09:53 PM “That’s why I would like to see you keep and post a daily running log of your thoughts on the position.”].
    For me, at least, these are useful – even just a “We’ll just leave this position as is.”. In fact, I would expect this to be the typical type comment for more than 70% of the time. The position is staying within your comfort zone. As noted before, the times when and why you are making a change, to close or adjust, will be more useful. But the “everything is within comfort zone” is good.
    All the best,

  2. Mark 09/05/2008 at 2:38 PM #

    All changes – even those seriously considered and rejected – will be posted.

  3. JB 09/05/2008 at 2:51 PM #

    Thanks Mark. This will provide great learning opportunities.
    I know at one time you contemplated posting more trades and if you are so inclined and have the time to keep us apprised of your thoughts that would be helpful also. To summarize –The more the better from really good teachers. This is you.