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August 4th, 2008 at 5:33 pm
K1 – I’ve been tracking the results also. I have to admit that in the first two weeks I tried to get fancy and made a couple of adjustments to the IWM and SPY trades. As it turned out I would have been better off leaving them alone. I mostly followed you on the rolls at opx, except that my IWM short call is at 67 with a basis of 3.70. Given the market action today, I’m not ready to change any of the positions yet. The put spreads are both positive but not outgaining the call spreads. Will reevaluate later this week.
I also started an XLF trade. Like IWM and SPY I tried some rolls that didn’t work out. Now after leaving it alone at a 20 strike for the past several weeks it is looking better. The XLF trade (@5.15 basis) had a much lower cost of entry than IWM and SPY. In this trade the put spread is gaining more than the call spread. No change in position anticipated.
I’m interested to see what the comparative returns are in the long run and I guess the biggest lesson learned here is to leave these trades alone as much as possible and just keep milking the premium.