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.