The settlements have just hit the market, and my March SPX position was 100% profitable! This was a great position – all in all the position yielded a 12% profit! The folks at thinkorswim are great, I didn’t even have to ask to have my margin freed up on this trade, so I’m already off to the races looking for another play.

The settlement for the RUT isn’t out yet, but its looking pretty good. If I can find another position that looks good, then I’ll ask for margin relief and move forward with that one as well…

Here is my first April Position

• April 2006 RUT 670/680 Bull Put Spread
• Sell 680 Put & Buy 670 Put
• Filled for $0.40 Credit

• April 2006 RUT 800/810 Bear Call Spread
• Sell 800 Call & Buy 810 Call
• Filled for $0.30 Credit

• Resulting Final Trade is an April 2006 670/680 800/810 Iron Condor
• Total Credit of $0.70

• Reason: The market is in a serious up trend, and looks to continue this pattern for the next few weeks/months.
• Risk: My trusty analyzer calculates that this position has a 89.40% chance of success. I like those odds
• Reward: This should yield a nice 7% in 36 days.

I will continue to monitor the market and hopefully find a play on the SPX or the OEX later today.

Update

I found a good looking play for the SPX. I’ve asked for margin relief and placed an order for the following trade.

• April 2006 SPX 1225/1240 1370/1385 Iron Condor
• If filled credit will be $1.25
• Reasons are the same as those for the RUT play above. I’ll post an official article trade for this when filled.

Update

Much to my dismay, the SPX position from above went unfilled. I have tried to change the position around a bit to see if I can get a fill, however it’s looking unlikely. I’ll keep my eyes out over the weekend to try and find a position that will hold ground. If I am able to find something, I’ll place an order for monday and post it.

So far, both March positions were 100% successful! One April position is open.

Categories: Options Trading