OPNewsletter (Jul 2008) : Closed +7.1%

This was not an easy month. In fact a very tough month. I mentioned to subscribers that this was the worst June for Dow in nearly 70 years and If we gain this month, or rather even break-even including our commission, at least, I will consider this a cause for celebration.

For me, preserving capital overrides almost every other investing theme. OPN not only delivered the break-even, but also delivered the upper range of it’s own target (5-7%/monthly). OPNewsletter closed at +7.1% for Jul’08 expiration trades. The result includes commissions and doesn’t include bonus trades.

This was not a good month particularly for plain Iron Condors and huge intra-days moves required adjustments and staying close to the market. Those who couldn’t follow same plan as OPN mentioned, may not have achieved same results in this a volatile market. Triple digit moves for Dow were a common sight.

Overall we spent only 50% of our capital this month as I couldn’t find any better opportunities and what worked in our favor this month was the right “Asset Allocation”. Thus preserving cash was more important than missing opportunities. With this cash and oversold markets, we may place some directional strategies for Aug’08 cycle.

There are a few posts I would encourage you to re-read as Markets are at a very delicate point. I am watching closely and shall share with the subscribers as key indicators provides some hints. Albeit, it’s going to be very tough and rough time.

  1. Where are we heading?
  2. and 7 ways to survive this market

Profitable trading, OP


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