With only 4 days remaining to expiration all filled trades are very safe and should be expiring worthless on Friday June 15th. We have 2 NDX Iron Condors and 1 RUT Bull Put Spread trade active. With the market acting so volatile last week it's hard to say if the bulls or the bears have the upper hand. I hope this tug of war causes the market to trade within a range. This would be a good environment for completing many Iron Condor trades.
I will email new trades expiring in July next weekend. June will be the 3rd month in a row that all fill trades have expired worthless.
HEDGING - The Only Way to Fully Protect Your Trading Balance and Accumulated Credits
My first hedge order was filled last week. Each month I will have one Trade Alert detailing my hedge trade. Please remember that this trade will only be profitable when a major event causes the market to drop by 8%, or 10%, or more. You can expect this event to occur at least once every 24 to 36 months.
Hedging with these stocks during earnings season can be very interesting if one of their reports includes a negative surprise. Your .02 cent or $2 options could rise to .10 and $10 very quickly. This is the other time you sell your Put options. Making an $8 profit per contract helps offset the cost of the creating these monthly hedges.
Please send me an email if you have any questions about this hedging strategy and the specific Put trade that expires in June.
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