My Bread and Butter Trade

[ernsttanaka]

I executed the discussed adjustment around 10AM this morning. I did not expect a run away market to the upside, but I can only allow myself so much room when it comes to delaying my adjustments. The name of my game is not 'correctly predicting market direction', my game is called 'Manage Risk while Theta is doing its work'.

Hence I moved 2 call spreads from 790/840 to 840/890.

In the attached graph you will see the effect on the break evens and the Greeks.

The 2nd graph I attach today shows 4 P/L lines each for 2 days further. So the white line is today, the next one is for Friday, Sunday, Tuesday and Thursday. You can see that the distance between the line become bigger, that is the effect of the acceleration in the decay of the Extrinsic Value (theta).

Completely theoretically I am getting close to my goal next week Thursday.