JAN/FEB SPY Calendar (-73% loss)

12/17/07

Bot (2) jan/feb 144 put calendars in the spy for 1.33 debit.

Trade was put on when my portfolio had strong negative vega and not enough profit/protection to the downside. Calendars are a good way to hedge your vega and downside risk.

Primary exit is 50% ror, I will hold as a downside hedge and will not close until over 50% loss. I will take off 1 contract if closes above 150.

1/09/08
Adjusted this trade not on the upside but on the downside believe it or not. SPY has fallen.....to the downside of the b/e and I am getting close to JAN expiry and losses will accumulate quick at this point if drop continues. Took off half of the postion so not to have too much downside risk. I am also considering that a few of my condors are getting a little stressed to the downside.
sold -1 JAN/FEB 144 PUT calendar for 1.27
originally bought for 1.33
.06 loss debit
still holding 1 contract of this trade and fortunately SPY rallied after I took this one off. If we can have a good up day tomorrow I may be able to pull of a =20% or so out of this trade.

1/18/08
No updays in sight straight down market, just gruesome.
closed up the final contract of this calendar for loss on expiration Friday.
STC JAN/FEB SPY calendar @0.42
originally bought for 1.33
net loss = 0.91 + loss from other 1 contract of .06
Total net loss on postion = 0.97 or approx $200
73% loss