Why is this bad?

forex-forex · Dec 5, 2007

Quote from MTE:

What's the point of the trade then!? You were/are willing to risk the full amount yet you take a miniscule profit!?

For the time decay, which I felt should have been a little faster during the first 7 or 8 days. My gut feeling is that the DIA will end up higher than 137 by expiry.

Quote from TradingPilot:
why dont you wait until expiration?
The position is still in the strike range.

I think I will, but I suspect that the DIA will end up higher than 137.

TradingPilot · Dec 5, 2007

yes there is a very good chance.

for me according to the software 56.8% chance of expiring IN the strikes to be exact.

forex-forex · Dec 6, 2007

Less than $1.00 from the short 136 calls, hopefully we get a down day on Friday.

MTE · Dec 6, 2007

Quote from forex-forex:

For the time decay, which I felt should have been a little faster during the first 7 or 8 days. My gut feeling is that the DIA will end up higher than 137 by expiry.

I know that the trade is set up to collect time decay. My point was that you unecessarily skew the results against you by getting out the instant the trade goes into positive.

forex-forex · Dec 6, 2007

Quote from MTE:

I know that the trade is set up to collect time decay. My point was that you unecessarily skew the results against you by getting out the instant the trade goes into positive.

From my previous post ..... "My gut feeling is that the DIA will end up higher than 137 by expiry".

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I just liquidated the call side as DIA hit 136. If DIA stays above 126 by expiration then total loss will be about $25.00, haven't done the exact math yet.

Sold 137 Dec 07 Calls @ $1.58 to close.
Bought 136 Dec 07 Calls @ $2.17 to close.

TradingPilot · Dec 6, 2007

I'm actually thinking about doing the same. buying the call vertical back. But im going to wait a little longer.

TradingPilot · Dec 7, 2007

I got rid of the 136/137 call vertical today.

TradingPilot · Dec 11, 2007

Quote from MTE:

I usually just leave it as it is. The volatility that caused the index to move against me can bring it back in. I size my position so that I can take a max loss on it.

I should of listened...

forex-forex · Dec 14, 2007

UPDATE - DIA 125/126 and 136/137 Iron Condor

I still have the put credit spread (125/126) of what was an Iron Condor. DIA must close above 126 at expiration (November 23) or the present $25.00 loss will increase.

DIA 3 month chart - December 13, 2007

Green dot = November 20 open Iron Condor (125/126 and 136/137).
Red dot = December 06 liquidated the Calls, Puts still open.