Tuesday, May 7, 2013

Exited all May RUT option positions

With 9 days to May RUT expiration, the market is still holding on substantial gains from last few days. My May RUT position showed large Greek values as shown in the following image. I had been waiting for a small pullback in the last couple of days which did not materialize. So I decided to close all the positions to wrap up May portfolio trades. On this relative calm day of the market, it took a while to get the iron condors and vertical spread to be filled.
Since the TOS analyzer does not count closed positions in the P&L columns, its P&L numbers include the open positions only. So it showed some profits here. In reality, I had close SPX and part of RUT inventories for a loss. So overall, the May month was a loss. I will calculate the P/L later in a future post.

Through this month's trading, I believe I identified a couple of weakness in my system, related to the lack of precise exit rules. My mindset analysis also need to include more considerations during position exits. I'll post more details on the lessons learned in my monthly trade review.

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