Trade results of spreads, April 12th to 16th, 2010 ( Report # 25 )

Report #25, end of monthly expiration week of April 16th. The BEAR MARKET or CHANGE OF TREND occurred.

Summary: Made five Vertical Spread Trades and one Iron Condor channel trade. All were winning trades!

I did one vertical with thinkorswim brokerage and this was more to test the ability to CLOSE out a Spread Trade. They were overwhelmed and unable to advise me, and I couldn't figure it out, so had them close the spread trade early for me.
5 Vertical PUTS 535/530 for a credit of +$150
The early closing cost me .10 cents, so end result was =$100
Two commissions were - $50. Net profit + $50 -- WIN
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Option House brokerage trade
5 sell 534/530 for .30 cents which was +$150
Less one commission of $25 ( went to expiration ) = $150 - $25 = $125 net profit --- WIN
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PAPER TRADING independently
5 April Puts 530/525 for .30 cents = +$150
Less commission of one due to going to expiration: $150 - $25 = + $125 net profit --- WIN
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Vertical CALL BEAR SPREAD on THURSDAY noon, 5 sell April Call 560/565 for +$125
Less -$25 commission = + $100 --- WIN
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Vertical Put BULL spread on THURSDAY noon, before next day expiration.
5 April Puts 535/530 for $150 ( went to expiration )
Less $25 commission = +$125 -- WIN
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IRON CONDOR TRADE ( bracketing channel ) Done on noon Thursday, day before Expiration Friday.

20 sell April PUTS 545/540 for .10 cents or + $200
This side of the Condor got threatened and had to be close early. We actually closed it 3 index points away and received .10 cents, so broke even on the cash, but lost $50 for the two commissions. Trade loss - $50
The other side of the Condor made money though and covered the loss.
20 sell April CALLS 560/565 or .20 cents x 2000 = + $400
Less commissions - $50 = $400 - $50 = $300. After deducting losing side of the IRON CONDOR we had a net profit for the CONDOR channel of + $300 --- WIN

**** This week was all CREDIT SPREADS using weeklies! The TREND changed on Friday and we will be going to a different strategy. Probably LONG PUTS and a shift to VIRTUAL BROKERAGE TRADING as we gain more confidence in our decision making.

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BALANCES IN DIFFERENT STRATEGIES TRIED UP UNTIL APRIL 16TH, 2010.

Virtual Account: OPTION HOUSE-
Option House balance: $3109 + $125 = $3234 (- 35% ) Made a slight gain to getting out of the hole here.

Paper trading in Quickie Trading: +6%(reduced from 12% to +6%) I'm planning to stop quickie trades. They lose too often.

Credit Spread singles: ( paper trading ) +10% last week. This week + 20% New Balance: $6025
I did five Vertical Spread trades. One on Option House brokerage for + $125 and one on sinkorswim brokerage. Haven't figure out how to close out trades in Sinkorswim brokerage yet and that will be the lesson for the coming week. Anyway, closed early, because of the panic with the help of the broker and cleared + $50.
All told for the FIVE Vertical Spreads I made + $525. In normal trading I would not have the capital beginning like this, to have the reserve margin, to put on so many trades at the same time. So the result is distorted.

Channel credit spreads called CONDORS (paper trading) + 18% Previous Balance was $5600 and new balance at end of this week is: $5,900. Because of the Sinkorswim large account, I was able to put the IRON CONDOR with 20 contracts, and the results reflected that improved earnings. Starting out with a $5000 account that would not be possible, only 5 contracts would have been possible and probably not worthwhile. I have mixed feelings about IRON CONDORS. Sort of thing to do, if the opportunity arises, but otherwise forget it, is my feeling. Anyway Condor trading is now + 18%, at $5900, but I'm probably going to drop doing them, except rarely.

Debit Spreads ( haven't started studying them yet ) (I'm also interested in eventually studying ratio spreads, diagonals and horizontals, and butterflies sometime. Got too much on my plate right now, trying to learn and absorb this stuff above.)

VIRTUAL ACCOUNT WITH "thinkorswim" brokerage VIRTUAL BULL CREDIT PUT SPREADS + 3.5 % WEEKLY EXPIRATION. I'm leaning toward concentrating on less risky, lower profit steady income flow from Vertical Spreads. Will know more after running this BEAR MARKET just started using some mix of Vertical spreads and long PUTS.

Trend longer trading (6 or 8 per yr)( hasn't started yet )zero neutral