A so-called time-bomb butterfly was established in the following manner:

1. Bought monthly at ATM put during an intra-day downtrend.

2. Achieved profit and sold out-of-the-money put to create a vertical.

3. Next day, followed the same procedure with a put equidistant from short strike.

4. Later sold another call at the short call strike to establish a butterfly from the ground up.

5. The position is and will be profitable; but if RUT returns to 900, the profit will multiply.

This is a wayward trade, made not in accord with those expected of junior options traders.

Jesse Livermore:

After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this:  It never was my thinking that made the big money for me.  It was always my sitting.  Got that?  My sitting tight! 


Don’t try to play the market all the time. It can’t be done, too tough on the emotions.

How long I remain on hiatus is impossible to say; for this is the first day off.


This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s