Update 8/5/11

The market meltdown was very good for the PCCRCs late this week, giving the account a 9% gain the last two days.

LULU Bullish Butterfly

LULU dropped with the market the last two weeks and was also hurt by rising volatility. The profit is about half what it was two weeks ago but if we get a bounce back the position will be fine. Current profit is +28%.



KMX Put Seagull

KMX finally turned slightly profitable today and I took some profits by selling 2 Oct 32 Puts for 5.10. This will help the position a little if KMX reverses and moves up and also reduces the risk slightly. Current profit is +1%.

JOYG Call Seagull

JOYG moved down with the rest of the market and yielded some nice Vega profits. I adjusted the position by rolling 4 Puts down for a 10.40 credit. Here is the risk graph just prior to the adjustment:

Note how the current price is below the lowest dip on the left hand side of the graph. If JOYG reversed and moved up some I would lose some profits. Here is the position after the adjustment:

Note how I am now centered in the dip and a move in either direction will bring more profit. A move up will now be more profitable than before and I have reduced the debit by over $4000. Currently the profit stands at 20%.

AAPL Put Seagull

AAPL has hung in fairly well with the drop in the market and the price has stayed inside the "cone" area of the risk graph so I have not made any adjustments. Profit now stands at 23%.