To finish out our Supplemental Trades closing orders, we're selling our initial, double-diagonal position (adjusted), as follows:
Day limit order
Buy to close 2 XLE May 80 calls
Sell to close 2 XLE...
We’re closing out our May Supplemental Trades portfolio with two orders. I’m sending both in one alert because they have opposite delta, so the orders will have to be managed together:
Order #1
Day limit order
Buy to close 2 XLE May 75 puts
For a net debit of $0.74† or better.
Note that the 2 contracts specified above represent our entire position in the XLE May 75 puts from Butterfly Hedge #1. We also are short the…
Our second order this afternoon adjusts our remaining downside delta hedge to produce the risk profile we want overnight. We’re selling 1/8 of our contracts in this position, as follows:
Day limit order
Sell to close the XLE May 74 put
Buy to close 2X the XLE May 70 puts
Sell to close the XLE May 66 put
for a net credit of $1.03† or better.
Note that because the total number of contracts currently open depends…
We may be able to reduce our May Supplemental Trades loss a little more by keeping most of our positions open for the next day or two—but only if we begin to take off some risk now. We’re closing the one position with negative theta, and will adjust our delta bias with a second trade to follow shortly.
Here’s the first order:
Day limit order
Buy to close 2 XLE May 84 calls
Sell to close 2 XLE…
Sometimes staying in the game takes deep pockets, and as the saying goes, “The market can stay irrational longer than you can stay solvent”. XLE’s 3% drop today has crushed our May Supplemental Trades portfolio…but we have an opportunity to make back a good portion of this month’s unrealized loss—at the cost of taking on additional risk.
Make no mistake: Any member who has real cash on the line and who doesn’t have the means and/or desire to accept the…
While we’re waiting for our prior order to get filled, we’re putting in a similar order for BF Hedge #2, as follows:
Day limit order
Buy to close 1 XLE May 70 put
Sell to close 1 XLE May 74 put
Sell to open 1 XLE May 78 call
Buy to open 1 XLE May 82 call
for a net credit of $0.94 or better.
Note that, as in today’s other XLE trade, the number…
With today’s 1.5% jump in XLE, we’re planning to adjust both of our butterfly hedge trades, starting with BF #1. We’re turning the butterfly into an iron condor by selling the following, overlapping iron condor:
Day limit order
Buy to close 2 XLE May 75 puts
Sell to close 2 XLE May 79 puts
Sell to open 2 XLE May 78 calls
Buy to open 2 XLE May 82 calls
for a net credit of…
This afternoon’s market implosion has triggered another risk-management alert for our XLE Supplemental Trades portfolio. We’re opening the following hedge position to further offset our delta exposure:
Day limit order
Buy to open 1 XLE May 74 puts
Sell to open 2 XLE May 70 puts
Buy to open 1 XLE May 66 puts
for a net debit of $0.74 or better.
Note, once again, that our target dollar trade size is equivalent to our currently…
Along the same lines as our earlier SPY butterfly hedge, we’re adding to yesterday’s ‘fly downside hedge position in XLE, as follows:
Day limit order
Buy to open 1 XLE May 79 put
Sell to open 2 XLE May 75 puts
Buy to open 1 XLE May 71 puts
for a net debit of $1.64 or better.
Note that in order to achieve our target portfolio-delta adjustment, we’re allocating an equal-dollar position to this trade—in other…
With XLE down more than 6% since Monday morning, we’re opening a downside hedge position, as follows:
Day limit order
Buy to open 1 XLE May 79 put
Sell to open 2 XLE May 75 puts
Buy to open 1 XLE May 71 put
for a net debit of $1.49 or better.
Note that 1contract represents our base position for this hedge trade. In order to come as close as possible to matching our Model Portfolio…
Thursday, May 19, 2011
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