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Managment Ideas for BWB's

One of the best ways to manage a broken wing butterfly is using the delta. It is actually pretty simple. Set a specific return in mind, for a BWB I would be shooting for at least 50%.

BWB

I have been reading several threads from Optionetics discussing BWB's (Broken Wing Butterflies). They act as if they are one of most "powerful" strategies.

I guess we know now

Well, we blew through 30, where are we heading now? Seriously, we might bottom out below 20, don’t be afraid to sell vol.

A few notes on the VIX

Tomorrow could be a very interesting and telling day. If the VIX breaks 30, I would be shocked if we didn’t march down to 25 or lower.

VIX NEARS 30

I’m getting sick of being so right all the time. I would not be shocked if we break through 30 today. The next step would be 25 and then on to 19 from there. How would I approach this period?

1.

What now??

Well….it seems like the easy gains are over. I don’t think that we are heading into an extended downturn or retracement but I do think we are done with this vicious boom upwards.

YHOO

I have been doing some reading about YHOO and there is still some specualation that MSFT could buy them out.

What to expect tommorrow

The stress test is out!!!! NOBODY CARES!!!!! End of story, once the leaks came out this was a non-story.

Where do we go from here?

I'm finally starting to think that we are hitting a VERY temporary top before we begin to head higher. Here is why:

1. That jump on monday was the second big up day in two weeks.

What an up day!

A few weeks ago talking to a student. She was telling me that there was no way that market could go up because the charts and the tech analysis said that we are running into a top.

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