MarketNeutralOptions.com

SPY (Standard & Poors Dep Rec) Iron Condor initiated on 11 Mar 2008

Trade Summary

Do nothing. Let remaining options expire worthless.

Profit or Loss: -$30 per entry.

Trade Analysis

There is no need to buy back the remaining put spread for this iron condor. We’ll simply let it expire worthless to save some commission. We lost $30 per position for this trade. As such, this advisory will be free of charge.

Good trading,

Gary

**********************************Trade History***********************************

3 Apr 2008

Just a quick note. Do note that this trade, same as all others, is still under auto-trade. If you are in auto-trade, you don’t have to do anything.

Good trading,

Gary

SPY (Standard & Poors Dep Rec) Iron Condor initiated on 11 Mar 2008

Trade Summary

For a net price of $1.29-$1.30 Debit or better.

Trade Analysis

First of all, some auto-trade participants will have the entire position close up for them to free up the margin. This is because some subscribers’ accounts will be under water by closing this call spread since closing the call spread alone will not free up the margin.

This brings me to the next point. I can’t emphasize enough the paramount importance in managing your risk. DO NOT EVER risk your entire account at any one time. I understand how some of you may want to make your money work hard so you use ALL of them for the trades. This is one of the most destructive action you can do to your account. Always trade what you can afford to lose. That’s why you don’t risk your entire fortune on 1 trade. You can’t afford to lose your entire fortune!

Alright, now back to my comments on this trade. This iron condor is a loser. The market is showing pretty resilient bullish sentiment. How long this bullish thrust can last is anybody’s guess. But we are not going to take any chance with this trade. We’ll rather suffer a small loss now and move on than to hold on to a losing trade and hope that it’ll turn around.

We decided to get out when the loss is minimal. There is high chance that this loss can easily get bigger. $1.29 is at the upper band of our limit. We decided to close up only the call spread to save on commissions. The extra commissions cost will just magnify the small loss.

We have 2 more open, untouched positions for April. We’ll be in touch.

Good trading,

Gary

**********************Trade History**************************

11 Mar 2008

SPY (Standard & Poors Dep Rec) Iron Condor initiated on 11 Mar 2008

Trade Summary

For a net price of $0.99-$1.03 Credit or better. [all tos auto-trade participants were filled at $0.99]
Total margin required/total risk: $101 per position.

Trade Analysis

This marks our first low risk/reward ratio (R3) iron condor for April and our second trade for April. Our breakeven points for this trade are 135.99 on the upside and 120.01 on the downside. This represents a profitable range of about 16 SPY points, which can be translated into about 160 SPX points. As long as the SPY trades between this range, we’ll have a profit. The probability of a profit currently stands at 51.18%.

Since we are risking $101 to make $99, this trade has a R3 of 1.02 [101/99]. Because we are risking almost one for one, we can afford to be more patient and wait for the time decay to work its magic. However, we still should have an exit plan. We should get out of this trade when it starts to trade at around $0.20 and lock in our profit. However, should the market turns against our position, we should have a stop loss at around $1.20-$1.30. I’ll be placing an alert should the price of this condor exceeds $1.20.

We will keep a lookout for this trade and inform you accordingly when there is a need for any adjustments or closure.

Gary

Founder, Head Trader of MarketNeutralOptions
www.MarketNeutralOptions.com

Please note: All MarketNeutralOptions Advisory emails are price sensitive. Therefore, all recommendations, unless otherwise noted, are applicable for ‘DAY’ orders only, not good-till-cancelled. If a recommendation cannot be filled, we may choose to resend the email the following day along with any modifications.
*******Options involve risk and are not suitable for all investors. ********