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With 1 week to go till April expiration, the following position adjustment trades were executed last week. The purpose of these position adjustments is to help partially fund the roll-out of the 6 short 525/535 call spreads to May.
Adjustment Trade 1: 05/04/2010
530/520 BULL PUT SPREAD (short put spread)
After putting this trade on I realized that the strikes were a little too aggressive based on the expected move calculation at that time.
Adjustment Trade 2: 06/04/2010
530/525 BEAR PUT SPREAD (long put spread)
After this adjustment, the position became 6 contracts of the 525/520 BULL PUT SPREAD (short put spread)
Adjustment Trade 3: 06/04/2010
525/520 BULL PUT SPREAD (short put spread)
I added more contracts to the position and now became 12 contracts 525/520 BULL PUT SPREAD (short put spread)
What the position essentially morphed to was an IRON BUTTERFLY
Put portion: 520/525
Call portion: 525/535
In order to bring in more credits I also executed an iron condor using the OEX Weeklies. The strikes chosen were based on the expected move calculation for the weekly expiration timeframe.
Adjustment Trade 4: 07/04/2010
1 Contract WEEKLIES
535/530 BULL PUT SPREAD (short put spread)
Adjustment Trade 5: 07/04/2010
1 Contract WEEKLIES
545/550 BEAR CALL SPREAD (short call spread)
Now the OEX closed at 545.46 on Friday expiration of the Weekly Options, so my short 545 Call was 46 cents ITM. I was watching it all the way to the market close (4AM!) hoping that it would tick down and expire OTM...sigh... Since OEX options are cash settled, there will be $0.46 that I have to pay back from the $0.50 cents credit that I took in for the BEAR CALL SPREAD. However, the BULL PUT SPREAD expired worthless and I was able to keep the entire credit.
More to come next week as expiration for the monthly options approaches and the roll-out to May for OEX positions will be executed