During the last few minutes of trading today I was able to find a nice roll trade for the SPX June condor and rolled it out to July. My rational here is that I was able to lock in the total profits from our June position, as well as capture additional premium for July. Here are the details of the rolling orders.

• Sold 25 Vertical Roll SPX July 2006/June 2006 1200/1190 1200/1190 Puts @ $0.42 Credit
• Credit $1,050, Commission: ($159.95)
• Sold 25 Vertical Roll SPX July 2006/June 2006 1350/1360 1350/1360 Calls @ $0.75 Credit
• Credit $1,875, Commission: ($159.95)
• Final Position is a July 2006 SPX Iron Condor 1350/1360 1200/1190 @ $1.17 Credit
• Margin: $25,000
• ROI: 10.4%
• Account Balance: $112,130.50
• Risk Profile: 7.15% Chance of Expiring below 1200, 13.47% Chance of Expiring above 1350

Basically, I was able to lock in all of our profits from the June Position on the SPX as well as capture an additional 10.4% potential profit into July. Together, the June and July positions will return more than 20% return in just two months. If the market makes any super dramatic swings upward I will adjust away from this July position. This money will be on the market a little longer than we usually leave money out there so I’ll keep a close eye on it.

So far in just a few weeks we have been able to lock in a very nice profit in the trading account. We have adjusted away from one position that would have been a looser, and have already locked in June profits. Not a bad few plays. Of course it is important the we keep an eye on what is happening overall as the market can turn away at any time. Being directionally neutral is a great place to be, you just can’t get too comfy and forget that your money is still on the line if things get out of hand.

Categories: Papermoney