All Bull Put and Bear Call Spread trades expired worthless on Friday July 20th. This is the 4th month in a row that all spread trades have expired. I am very committed to ensuring this expiring trend continues for the remainder 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 5.8% ($302/$5,198). All credit premiums collected totaled $302 (35+40+85+57+85) and $5,198 (925+2,358+1,915) margin was required per contract. If you traded 10 contracts per spread your credits totaled $3,020, 20 contracts $6,040. These are the returns and cash flows I expect to receive consistently each and every month. In July we had two Iron Condor trades completed on the NDX and RUT Indexes. These trades required margin for one side and generated returns of 6.0% (142/2,358) and 8.1% (75/925).
New trades expiring in August 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 25 point Bull Put, RUT 10 point Bull Put and SPX 20 Bull Put spread trades have been very profitable and safe these past few months. With the markets continued to rise I will be executing only new Bull Put trades this weekend. I will only consider the Bear Call trades to complete Iron Condors once the markets have settled down.
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