Wednesday, June 23, 2010


I put a day order in for Thursday on TLT selling the 101/102 for .23. The only time we've traded higher than seen in the chart below is Sep 08'. This is one of those plays that will tie in to my SPY put hedge in that if I were to lose the max on this trade, meaning yields on the 30-year break under 4%, I can only assume that means equities sold off hard. I used the number of contracts that would set  my max possible loss at 1% of trading capital. I'm going to try and stick to 1% per trade for a while and see how things go. Already early on I'm a little uncomfortable looking at the dollar amounts, but I realize I have to look at things in terms of percentages. And trading .5% per trade doesn't make a whole lot of sense unless I'm doing serious volume trading, which I'm not. Also, though I'm comfortable with the smaller dollar amounts used in the past, self admittedly it was too small and capital was not being used efficiently.


  1. I was filled on this order at .23, then immediately rolled in to an iron condor by selling the 96/95 put spread at .18

  2. I closed the calls out at .33, after commission this is a .12 loss, or $300. I can still profit on the overall position if the puts expire worthless.