Saturday, December 19, 2015

Week Ending Dec 19

As expected SPX moved lower prior to the Fed decision, VIX was at 24 and for about 20 min SPX channel-traded around 1995-1999.I was hoping for a scratch on the Iron Condor but just couldn't risk it. The risk was just not worth the potential damage.

So I closed the 1985/1990 2130/2135 Iron Condor for 1.6$ having received a credit of 95c. So around 130$ loss out of a max potential loss of 1000$ for 2 contracts, I'll take it.
Remember, no one knew how the market would behave, after all this is a decision after 7 years.
Another reason for closing is since this was a monthly, it's AM settled and last trading is on Thursday, I might not have had enough time to recover should the market move against my position, so I swallowed the loss.

After  the fed decision to raise the rates, the IV collapsed as did premiums.
With a kitty of 7 potential contracts, normally I would have executed 5 for week+1 and 2 for week+2, but the premiums were so low that I switched it.
I played 5 contracts for 12/31 expiration and 2 for 12/24 expiration. 

That's all for this week , nothing further to report,except that anxiety levels have really tapered off now that I''m playing indexes as opposed to short equity strangles!
SPX at 2055 and VIX at 18.22 as I write.

Net Cash 4136$.