April
I’ve removed most of the 1050/1060 call calendars from my April trades which helps with the maximum upside risk. I am waiting for any pull back to the low 1050s to put on a 1030/1080/1110 call BWB. I might put on a more ATM BWB as well to increase theta. Right now, re upside, I’ll take my chances since I’ve got limited upside risk. With RUT at 1062, we’re at the 200% fib extension which corresponds with a 50% retracement of the down move. This is about 120 RUT points (12%) in the matter of 10 trading days. Incredible. I find myself amazed at market moves lately both in currency and in equities. Historically this up leg on the RUT should pause retrace some. This is a giant move. If you follow Lockes BB strategy, we’re at the 120 point bounce “What the hell are you waiting for, put on some bearish butterfly” stage right now which is very rare.
Unfortunately, all April trades are down into negative P/L territory but any pull back to the 1030s would put us profitable. My plan now is to wait for any pull back to add some call BWBs, a few ATM BWBs to increase theta and to perhaps roll up some of the bottom BWBs.
These past 60 days have been incredibly frustrating. Massive down moves and now I am dealing with a massive up move. 12% since Feb 11? Really? Annoying.
March
I’ve got no movement here except I removed some call calendars. Waiting for better opportunity. Deltas are negative but fairly low and with low gamma. Waiting for better opportunity. I am glad I got out of nearly all the March trades last week but now what is remaining is losing $. Any pull back to even the low 1050s would be helpful. Upside is limited risk but still can lose some more $. I am more apt to be patient right now with this strong of an upmove. IF it happens to keep going past 1070 without a pull back, well I’ll take that risk.