Thursday, March 15, 2012

New Trade Buy iron condor CAT

Trying out a new idea from Klaiman/O'Brien/Augen/others about long iron condor/short butterflies to take advantage of near term moves.  With negative theta/positive vega, these positions tend to offset short iron condors which have positive theta/negative vega.

CAT Mar4 -105p/+110p/+115c/-120c for 1.20 debit.   Looking for 3-4 point move or volatility increase over the next 5 trading days. 

Target 25% / stop loss 20%

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