Sorry! This article is a little late. I got tied up on Friday and didn’t have a chance to post the modifications to the papermoney account. I did make a few changes in the account and will work to unravel most of these plays early to middle next week. There are some big reports coming out on Tuesday and Wednesday, I’ll be looking out for the numbers and adjusting quickly if needed!

I closed out the MSH Vertical that was hanging out and sucking up margin, the cost was pretty marginal and I needed to free up the cash for the RUT plays. After doing that, I closed out the Vertical that was the top of the current RUT Iron Condor, sold another Put Vertical on the RUT and then created an unbalanced Iron Condor on the RUT by selling 2x as many Call Verticals. Here are the trades…

• Bought 25 MSH June 540/550 Call Verticals @ $-0.10
• Credit $250, Commissions ($84.95)
• I tried to buy this for $0.05, but I got the fill for $-0.10. Sometimes you will get a great fill like this, but its not all that typical.

• Sold 25 RUT June 670/660 Put Verticals @ $0.77
• Credit $1,925, Commissions ($84.95)

• Bought 25 RUT June 830/840 Call Verticals @ $0.05
• Cost ($125), Commissions ($84.95)

• Sold 50 RUT June 740/750 Call Verticals @ $0.42
• Credit $2,100, Commissions ($159.95)
• Account Balance: $112,425.90
• Margin: $100,000
• Cash for Adjustments: $12,425.90

So here is the plan… I’m looking to close out all of the June positions early/mid week. Ideally, things will move to just the right spot on Monday and I can close out trapping some profits. I’m a little unsure exactly what will happen on Tuesday once the economic data starts to come out. If the data shows that inflation is trending downward then its possible that the markets could just take off upward.

However, if the data is showing inflation continuing to trend up, we could see another quick drop in the markets – potentially violating the MSH 480 strike and costing us money! I will be watching this very closely, and taking it day by day… Time is our friend, but I don’t want it for granted – settlement prices could cost a lot. Stay tuned, I’ll post updates throughout the week.

Categories: Papermoney