TRADE 5

“There is a house by the sea, and an ocean between it and me” – Iron & Wine

Exited Trade 3 with a 0.9% gain after 13 days.  Didn’t go as planned, but it’s very encouraging when a trade that isn’t working out still closes with a gain.  It’s also more pleasant trading from a terrace overlooking the Mediterranean.  No complaints here.

Entered another trade similar to Trade 4.  Strikes are at 2585-2550-2500 and it’s 43 days to expiration.  SPX broken wing butterfly again.  Probably sounding like a broken wing record.

Trade 5 profile.

Will be updating Trades 4 and 5 over the next few weeks.

I’m live testing some much smaller trades involving VXX which is an ETF that tracks volatility.  These are bear call spreads and this looks to be a very intriguing trade that came to my attention through an options trading group.  This is the type of trade that has a very high win rate and average return – but also comes with a high drawdown.  This means much less capital will be allocated.

I’ve also been experimenting with Ron Bertino’s Space Trip trade using /ES futures.  He has a solid reputation in the options trading community and offers a course that I’ll probably end up taking in the near future.

The overall goal is to continue broken wing butterflies as my primary trade – but also find some complimentary trades that will help diversify.  I’m also continuing black swan protection in the form of VIX calls that I’ll share later.

Meanwhile the market continues to make new highs.  Bulls are passing go and collecting $200.  Bears are continuing to seek good fortune.

We have a few more lazy days on the Costa del Sol and then we’re headed to Lisbon.  The goal in planning this trip was two full lazy weeks in between all the flights, trains and sightseeing in the bigger cities.  So far it’s worked out perfect for us.