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Week in Review.

The Original intention of this blog was to keep track of some unique structures and adjustments, but I find myself doing a lot of the same strategic option positions, and overlays that do not merit their own complete write up without continually repeating the same material.

This is just some of my personal highlight reel of a few interesting trades and market timing, and the use of Condors. We would typically prefer them to be unbalanced and or skewed, but there are times in the market where volatility doesn't allow or merit the additional capital risk or margin outlay.

GLD ORDER ENTRY 05/10/2013 GLD is actually 4-5 dollars above these condors at placement.

This Condor is (7-3-7 balanced)

For me personally, when I place an order for one lump sum, and its slowly pieced out, (filled a few at a time)- it lets me know I have priced the order well. There is no real demand to jump on a mispriced edge, or give up free advantage to the counter party.

When Trading directional condors, I personally don't want it to move instantly into my profit zone. I would rather have it hang out sideways for a while, then when and if it does dip into my expected zone the reward potential is increased.

That was not the case here, GLD had a hard sell off, and its at my target price, albeit sooner then I expected. This point is key, and something I have seem many option traders do. They want a larger, or full payout for being right,- and its this very thought that conveniences them hold the trade till it moves out of their intended zone,- thus creating a loser. This pitfall is so common to someone who has been hit with a string of losing trades, and wants/or needs a larger payout for his risk to "get back to even".

I did the prudent thing and acted when it hit my price.

So I Exited 1/2, and then the rest the following day because I do not like the feeling of allowing profits to slip through my hand, and this habit also becomes mentally refreshing to book small profits continually.

back to back days on 05/16 closed 10x @ $2.10 and 05/17 closed 10x @ $2.47

Entry Cost $1.20 x 20x Puts = -$2400.00 (Debit to enter)

Exit Cost $2.10 x 10x Puts (Credit to Close)

Exit Cost $2.47 x 10x net net exit = $2.285

Gain = $2170

Gold has moved hard and fast, this play was over,- It came so rapidly that our expectations of it remaining here has completely changed, so we flip the cards, but add a slightly skewed upside call condor.

05/22/2013 we officially flip the cards over.

Slightly SKEWED Condor

(3-5-4 Balanced contract skewed pricing 50x)

and on 05//30/2013 exit

Entry Cost $1.20 x 50x @ $1.20 Calls = -$2400.00 (Debit to Enter)

Exit Cost $1.90 x 50x @ $1.90 Calls = $ $9500.00 (Credit to Close)

Gain = $7100.00

and we wrap up the week with a little VXX credit spread action .