Semana 43 / Week 43 ( Oct 14 expiration )

Nueva semana ganadora, no exenta de peligro en el dato de paro mensual del viernes, pero con un mercado que no se movió y nos permitió cerrar el martes a primera hora, consolidando el 75% de la prima ingresada. Miercoles y jueves el mercado cayó muchísimo, siempre hay que cerrar Lunes o Martes de la semana de vencimiento  o Vega ( volatilidad ) y Gamma ( velocidad con que cambia delta) nos estarán esperando al doblar la esquina. Este jueves no hacemos entrada, no me fio un pelo del mercado.

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New winner week, not without danger, considering the monthly unemployment data on Friday, but with a market that did not move and allowed us to close early on Tuesday, consolidating 75% of the cashed premium. Wednesday and Thursday the market fell sharply, that's the reason why we must not be exposed to the market after Tuesday of the expiring week or vega ( volatility ) and gamma ( delta change speed ) will be waiting for us round the corner. This Thursday won't be entry, I don't trust the current market.

Strategy report

Chart

Money management template and main Stats

Semana 42 / Week 42 ( Sept 30 expiration )

Segunda semana ganadora, aunque el incremento de volatilidad en el Russell recortó parte del beneficio que nos aporta el paso del tiempo ( theta ) en nuestra opciones vendidas weeklys. Esta noche habla Janet Yellen con el mercado cerrado y prefiero no operar el vencimiento del 7 de octubre. La subida de tipos puede llamar a la puerta incluso esta noche.

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Second winning week, although an unexpected increase in Russell index volatility eroded part of our profit given by time value decay (theta) in our sold Weeklys options. Tonight Janet Yellen speaks after the bell and prefer not to trade next October 7 expiration.

An interest rate increase is knocking on markets door...........maybe tonight ?

Strategy Report

Chart

Money management template and main Stats

Semana 41/ Week 41 ( Sept 23 expiration )

Tras un parón de 8 meses, incluido un complicado verano, reanudamos la operativas con weeklies de los jueves aprovechando el mercado lateral-alcista en el que nos encontramos inmersos que favorece nuestra operativa. No operaremos todas las semanas, sobre todo si hay publicación de datos importantes. Empezamos de una manera conservadora con solo dos contratos y desde 0, lo que supone unos 33.000$ de margen en el broker para una cuenta tipo REG-T ( Interactive Brokers).

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After a break of eight months, including a "hot" summer , we continue with our weeklys options trading on Thursdays, taking advantage of a side-bull market in which we are immersed that supports our trading. But this time we are not going to trade every week, especially if there is a significant earnings/economic calendar . We have just started this week conservatively, with only two contracts from zero, which suppose a 33.000$ margin requirements for a REG-T account (Interactive Brokers )

Chart

Money Management template

Para el vencimiento de la próxima semana entramos ayer Jueves a las 17:50 vendiendo el rango 1225-1285 para un indice en 1255.// For next week expiration we sold yesterday, Thurday , a strangle with a 1225-1285 range, while Russell Index valued 1255.

Paramos operativa de opciones / We stop selling options strategy

Dada la situación actual de mercado, con volatilidades cercanas a 30, esta operativa no es recomendable en este entorno de mercados ,así que no vamos a hacer mas trades en las próximas semanas, hasta que los mercados se tranquilicen.

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Given the current market situation, with volatility close to 30, this strategy is not recommended in this market environment, so we will not make more trades in the coming weeks, until the markets calm down.

Semana 40 / Week 40 ( 01/08/2015 expiration date )

Pues para empezar el año los tres Reyes Magos nos han traido mucho carbón. La excusa del primer dia del año, las tensiones con el petróleo y el fantasma de China, nos dejan debilitados, perdiendo mas del 50% del beneficio de todo el año en una sola semana, y un inesperado drawdown de casi 10.000$. Aun así no olvidemos que quedan 12 semanas para cerrar el año y estamos un 7% arriba. Vigilaremos muy de cerca de la volatilidad y analizaremos el no operar en picos excesivamente altos.Una pena porque pensé no hacer nada la primera semana del año.

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Well....to start the year, the Three wise men have brought us a lot of coal ( Spanish tradition when a kid has behaved bad. We have the tradition of the Three wise men instead of Santa Claus for Christmas presents ) . The excuse of the first day of the year, tensions with oil and the ghost of China showing up once again, leave us weakened, losing more than 50% of full-year profit in one week, and an unexpected drawdown of nearly $ 10,000. Anyway We don't forget that there are 12 weeks left to close our first year and still are up 7%. We will monitor closely the volatility and consider do not operate in the excessively high peaks. It was a pity because I honestly thought not to trade during the first week of the year.

Trade Set up

Index Chart

Rvx Chart

Money Management

Performance each 10 weeks

Equity line

Semana 39 / Week 39 ( 12/31/2015 expiration date )

Semana muy tranquila y ganadora, gracias señora navidad porque es la mejor fecha para operar esta estrategia !
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Quiet and winning week, Thank you Mrs. Christmas because This is the best time of the year to trade this strategy !

Trade Setup

Index Chart

RVX Chart, Volatility sleeping deeply

Track record after 39 weeks, 

Semana 38 / Week 38 ( 12/24/2015 expiration date )

Por fin una semana tranquila, con una volatilidad muy estable. Próximo vencimiento abriremos miercoles 23 en lugar del jueves al haber menos días hábiles.
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We had a quiet week with a very stable volatility at last ! . We will open next strangle on Wednesday 23 instead of Thursday as we have less business days.

Trade set up

Index Chart

RVX Chart

Track record since March ( 2015)