Yo Pit Crazies,

Hopefully you were able to attend our Saturday Class. A grand time was had by all and folks even learned a thing or two.

On Saturday Mark and I introduced trading with an edge ahead of time. At least finding the best trade for the job. Thursday’s OP Newsletter was about the type of trade I wanted for a market this is grinding lower. Below is an EdgeHunter snap of butterflies in the close Thursday. Green blinky lights said flies were favorable with a good change to pay out.

I covered this trade in the Pro Session.

I set up a positive decay, positive gamma trade…

The SPX butterfly below had roughly $220 a day in decay. The VIX puts very little with the implied volatility in VIX moving higher. It was maybe $30. The SPX fly and VIX put combination made money from $4150 SPX and higher. If SPX did not move, the trade would make money. Where it did not win was a 4% gap down in SPX. We have not had one of those all year. I decided to run the trade on what was the most likely outcome down and slower. I placed the losing area in the least likely outcomes.

That was my opinion. 

This is the Pro Pair trade I set up in class on Thursday and put on.

I was able to exit the SPX flies easily at $20.5 and they closed near $24.00.  The VIX puts lost a .10. A controlled $500 per trade.

Mark and I covered trading a range on Saturday. I also cover that weekly in Pro and the Easy Button and for that matter all my classes. 

To Your Trading Success,

AG