Wednesday, May 21, 2008

CLOSE: CCJ Post Earnings Butterfly +3.2%

This one was a monster trade. I was at around a 20% loss for a while on this one, but it never hit my stop loss near 30%.

My fellow trade buddies that did this trade got stopped out today, but luckily, I took off my stop loss last night seeing the volatility craziness. Since this position was sized correctly for max loss, I figured that I was already willing to lose the full debit I spent, so I took off the stop loss to see where it would go today.

On 5/14/08 I entered as follows:
BOT BUTTERFLY CCJ JUN 08 45/40/35 PUT @1.90 debit

Today I exited at just above breakeven for a small profit merely on a volatility fluctuation:
SOLD BUTTERFLY CCJ JUN 08 45/40/35 PUT @1.96 credit

1.96-1.90/1.90= 3.2% ROI in 7 days

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