Closing of September Position

          After such a fluctuating market, I decided that it would be best to take the position out at a profit of $1,821. The position was taken off on Tuesday the eight. At that point the Delta was extremely negative (-151) and it didn't make sense for me to keep the position trading, especially because the volatility isn't going to drop until Wednesday. This is because the Federal Reserve is meeting and deciding if they want to raise interest rates. Since there is an event coming  up the implied volatility is and continues to be high until after the event is over and either drops dramatically or stays where it is.

          I am looking to put on my October position tomorrow even though it is only 38 days until expiration. I believe it will be a helpful experience for me in order to learn how the position reacts in a higher gamma environment.

This is how the end position looked like when I removed it.

What a Week!

     Wow. What a roller coaster this past week has been. I apologize for not keeping the blog updated on the position but my first adjustment was yesterday. I adjusted the position because the gamma trend behind and in front of the butterfly was not too good.

As you can see, even though the market jumped around so much, I am still not down too much. A lot of that is thanks to the position being placed 56 days to expiration. This gives the trade time to develop and is not as effected by the market being so fickle as a trade that was put on recently right before the market tanked. As I have learned, the market has not fallen so much in the past two decades and while I would have preferred an easy trade, being affected by this with the rest of the world has been a wonderful learning experience for me. 

This is what my position looked after adjusting it yesterday. I moved my five 1160 butterflies back to 1120 and moved my call back to 1090 to increase my Delta value. My dad taught me that if you have to adjust a position, you should never change the signs of the Delta and since I started with positive Delta, I had to keep it positive Delta. The adjustment brought more positive Theta and more negative Vega to create an overall balanced position. Today, my current position is up $1,111 (hopefully that means luck) and my Greeks are all within their limits. I will keep the blog posted throughout the school year as best I can and look forward to sharing my position with you in the near future.