All Bull Put and Bear Call Spread trades expired worthless on Friday June 15th. All April and May trades expired and now now all the June trades expired. I will work hard to ensure this expiring trend continues for the remaining 6 months of 2007. My trading strategy is very conservative resulting in safe credit spread trades earning 3%-8% each. I will strive and complete safe Iron Condor trades earning 5%-8%. These trades complement single Bull Put and Bear Call trades earning 3%-5%. My goal for the remainder of 2007 is to earn a respectable 5% each month. This was accomplished this month.
The total return this month was 5.3% ($225/$4,275). All credit premiums collected totaled $225 (30+130+35) and $4,275 (970+2,370+935) margin was required per contract. If you traded 10 contracts per spread your credits totaled $2,250, 20 contracts $4,500. These are the returns and cash flows I expect to receive consistently each and every month. The return will be even higher in months when additional Iron Condors can be completed on each Index. In June we had two Iron Condor trades completed on the NDX Index. These trades required margin for one side and generated returns of 5.5% (130/2370) and 6.9% (30+35/935).
New trades expiring in July will be emailed later this weekend. I will continue to focus on selecting very safe trades and I already have a few Iron Condor and Bull Put trades identified. The NDX Bull Put and Bear Call 25 and 10 point spread trades have been very profitable and safe these past few months. The Bull Put RUT trades have also been very profitable. The SPX index continues to be a very difficult index to trade safely.
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