TRADE 10

“You ever heard the story, of Mr. Faded Glory?
Say, he who rides the pony must someday fall” – Mother Love Bone

My favorite band covering one of the early pioneers of grunge, Andy Wood and Mother Love Bone.

The VIX volatility index fell from the mid 14’s to the mid 9’s in 4 days.  The result of that was very positive for the trades I put on last week.

I closed trade 8 for a 4.2% profit in 5 days.  They won’t always be this easy, but I’ll take it after the headwinds that I’ve experienced over the past few weeks.  Here is what the profile looked like just before I submitted the sell order.

Trade 9 also benefited and is currently up 3.3%.  I still have that trade open.

Trade 10 is a 2640-2605-2555 broken wing butterfly with an expiration date of January 12.  Very similar initial setup to trade 8.

Again, I’ve set this up with a slight bullish bias.  The SPX just touched 2600 today and I expect the move north will continue over the next few weeks.

Finally, a quick update on XIV.  I entered last week at 107.57 and today XIV closed at 117.30 which puts me up 9% on this trade already.  This will most likely be a longer term hold as long as the VIX stays in Contango.