July 2009 Results:

I am pleased with the July results as I managed to bring in the largest premium amount so far. I contribute this to the fact that 4 trades were placed instead of the usual 2 or 3 and to the large premium received from the 1200 strike put which brought in $322.50. The timing of this trade was particularly good as I managed to place the trade just as the VXN level increased, capturing the increased premium, and closed the trade 9 days later once 75% of the max profit was achieved. I chose to close the trade at this point because the strike was the closest to the money, and remembering that this trading strategy is "low risk", closed the trade once 75% max return was achieved, thereby locking in the quick profit and removing the trades risk.

As I stated in my previous post, earnings season is underway and I expect a rise in the volatility level, increasing the put premiums for August. It seems the market in general is beginning to accept that the economic recovery is further off than the "green shoots" predicted. Hopefully the earnings reports back this up, and the market turns down. I had spoken about selling the Aug 1125 put for about 4.40, but with today's decrease in volatility it now trades for only about 1.90. It is still comfortably 22% otm, so tomorrow I may try to sell it for 2.00 on any uptick in volatility.