All Bull Put and Bear Call Spread trades expired worthless on Friday May18th. All April trades expired and now now all the May trades expired. I want to continue this expiring trend the remaining months of 2007. My trades will always be conservative and safe and earn 3%-5% each. A 3% return for 30 days is not a bad return and is the average for a single Bull Put or Bear Call trade. When we complete an Iron Condor the return improves to 5%.
The total return this month was 4.3% ($190/$4,385). All credit premiums collected totaled $190 (30+40+75+45) and $4,385 (970+960+2455) margin was required per contract. If you traded 10 contracts per spread your credits totaled $1,900, 20 contracts $3,800. 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 May we had one Iron Condor completed on the NDX Index. This trade required margin for one side and generated a 4.9% return (75+45/2455).
New trades expiring in June will be emailed later 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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