Update of Trades Closed and Expired in March 2007

All Bull Put and Bear Call Spread trades expired worthless on Friday March 16th including the SPX Bull Put spread that we had to close out early when the market dropped 500 over 2 trading days. The RUT and NDX Bull Put Trades had short positions very FOTM when ordered. Fortunately the NDX Bull Put and Bear Call recovery trades expired worthless last Friday. These were risky trades with very high premiums but the trades helped offset some of the losses incurred closing the SPX Bull Put Trade.

The total return this month was a (.07%) loss ($90 debit/$12,430). All credit premiums collected totaled $545 (25+160+230+25+60+45). This was more than offset by the $635 debit required to close the SPX Bull Put Spread, or a $90 debit (635-545). The margin required per contract was $12,430 (975+975+2340+2270++975+2440+2,455).

Because of this loss I have refunded all subscription fees collected between the February and March expiration dates. Look for emails notifications from PayPal about your credits. If you do not receive your refund by March 18th please send me an email.

April will be tricky with a Fed meeting next week, the sub-prime lenders shutting down and China’s recent Interest Rate hike. I will be starting with some very FOTM NDX 25 point spread trades again because these trades have been very profitable these past 3 months. The SPX index is the difficult one to trade. I will also look at 10 or 20 point RUT trades. New Trades will be emailed after the markets close on Monday the 19th. I am going to be very patient and choose very FOTM and safe Bull Put and Bear Call trades. I want to safe on the days the DOW rises and falls by 100-200 points.