Friday, April 20, 2007

All April Trades Expired Todayl

All Bull Put and Bear Call Spread trades expired worthless on Friday April 20th. Bull Put Spreads trades on the NDX and RUT Indexes were traded first followed by 1 Bear Call Spread trade on the NDX Index. This NDX Bear Call trade completed an Iron Condor. Bull Put and Bear Call Spreads on the SPX Index and Bear Call Spreads on the RUT Index were to risky this month for this strategy.

The total return this month was 4.2% ($245/$5,835). All credit premiums collected totaled $245 (40+80+80+45) and $5,835 (960+2420+2455) margin was required per contract. If you traded 10 contracts per spread your credits totaled $2,450, 20 contracts $4,900. These are the returns and cash flows I expect to receive consistently each and every month. The return will be higher in months when additional Iron Condors can be completed on each Index. In April we had one Iron Condor completed on the NDX Index. This trade required margin for one side and generated a 5.1% return (80+40/2455). I have posted all the trade details for each trade on my web site's performance page.

New trades expiring in May will be emailed this weekend. I will continue to focus on selecting very safe trades and I already have a few Bull Put trades identified. The NDX 16XX Bull Put and 19XX Bear Call 25 point spread trades have been very profitable and safe these past few months. The Bull Put RUT trades have also been very profitable.

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