Wednesday, January 26, 2011

Cashed Out ZB Trades

Today's FED announcement was just as planned, meaning rates are left unchanged and there wasn't any significant new language. Yet the bond market went nuts for 30 minutes after and traded in a full 1'00 range. I took the opportunity to close out the two short positions I put on yesterday. I captured 23/33 = 70% of the premium on the FEB1 Weekly in just 24 hours, with 9 days left until expiration that had to get closed out. I don't have the patience to wait 9 more days for another 10 ticks. And the short futures at 121'00 was automatically closed at 120'00 as that is where my GTC was set. As you can see from the picture below I have my orders set to scale back in to shorts at 121'00, 121'16, and 122'00. I might even double up on the 122'00 depending on what the action looks like at that time. I'm currently short one FEB 122 Call and still looking to scale in to a maximum short position of 5 contracts. Total take for these two trades is $1350.

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