IWM rolls 13 and 14 August


As seen in the graph above, IWM remained range bound in the last 2 days, fluctuating around 157. We optimized our positions for maximum theta decay by rolling every time the stock moved by $1.00. This sacrificed a bit of cash flow, but were brought in profits and optimized future profits.

On the 13th we closed off the puts and calls as separate elements, when pivot points were crossed. This was profitable, but is not something I would recommend to my viewers. It can be confusing, and easily lead to errors.

The next three trades were standard rolls. This requires careful attention to the securities price movements, and almost by definition requires the investor or trader to "live" in front of their computer or cell phone. But it adds a lot of additional income over a less frequently traded strategy.

The final and last trade taken today closed out the imminently expiring straddle, and sold a new straddle for the next closest expiry.

Status on August 12
size: 35 contracts Original Launch June 8
Long Term Hedge: $93,159 or $26.61 per share
Cash Flow to Date: $23,018 or $6.57 per share
P&L to date : $53,935 or $15.41 per share

Our long term LEAPS are worth a positive $2750 if closed today. This is a 60% return in 9 weeks time, a phenomenal result. If this continues, we could see a 346% yearly return, which would be simply mind-boggling. Of course, our results may deteriorate, over time, though we are confident they will continue to be quite good.