Semana 65 / Week 65 ( Aug , 18 expiration date )

A pesar de las dudas que habia en el mercado, la tensión con Corea , hemos cerrado la mejor semana de toda la serie histórica; gracias al incremento de volatilidad cercano al 40% , que hubo en los dias previos a la apertura del trade. El rango 1355-1405 podia parecer algo estrecho, pero es lo que nos marcaba 1 desviación estandar; considerando el precio del subyacente, numero de dias a vencimiento y el nivel de volatilidad histórica del momento. Esto nos supuso un ingreso de  10$ de prima por contrato , muy por encima de la media de los ultimos meses. Simplemente fantastico , y a mes y medio de cerrar el año ya tenemos un 30% de rentabilidad ; con mínima exposición al mercado. No hay trucos , solo mucho disciplina.

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Despite several doubts in the market, the tension with Korea, We closed the best week of the whole historical series; thanks to a volatility increase next to 40%, which occurred just a couple of days before opening the trade. The 1355-1405 range may seem somewhat narrow, but It is simply the value of one standard deviation; considering the price of the underlying, number of days to maturity and the level of historical volatility at the moment. This gave us a $10 premium income per contract, above the average of the last months. Just fantastic, and a month and a half ahead to close this first year We already reached a 30% profitability; with minimal exposure to the market. No tricks, but so much discipline.

Weekly performance and main Stats

Rusell 2000 main chart and trade evolution

Money management template and track record

Semana 64 / Week 64 ( Aug, 4 expiration date )

Semana muy dificil que cerramos con un beneficio minimo.  Nada mas abrir el rango 1420-1470 el jueves, el mercado bajó bruscamente casi un 2% , y el precio se paró todo el viernes, al limite de saltar el stop loss, incluso llegó a tocar el put strike vendido, pero la volatilidad no apenas se movió el viernes y eso nos salvó. Cerré el martes nada mas abrir el mercado porque a pesar de que el indice empezó a subir , tambien lo hizo la volatilidad, lo cual no es frecuente, y va contra nuestra posición al ir cortos de volatilidad.. Mejor esperar a otra semana.

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Very difficult week that we closed with a minimum profit. As soon as the 1420-1470 range was opened on Thursday, the market fell sharply by almost 2%, after this,the price stopped along Friday,. Despite the put strike was touched ( position entered " at the money") , stoploss wasn't executed, because  volatility did not barely move on Friday and this situation saved us. I closed on Tuesday just a couple of minutes after opening the market; even though the index started to rise, so did the volatility, which is not frequent and goes against our interests (we are short on volatility ).. Better wait for another week...

Week Performace and main set up

Chart analysis over Russell 2000 Future ( not index)

Track record and money management template