The markets swooned today beginning with China worries; and never recovered. SPX closed down 2.3%, over 3 one-day standard deviations. Our second downside adjustment trigger was triggered at approximately noon est., and the put spreads were rolled down another 20 points as per the plan.
The combination of SPX continuing to move down, and the volatility increasing, caused the position to reach our pre-set max loss of $300, and the trade was exited at about 2:30 pm est. with SPX at 1562.89.
Below are the 2013 results of the SPX weekly, including this week's loss:
SPX 2013 Results
For those of you not that familiar yet with this trade, below is a summary of the cost basis for the entry, adjustments, and exit for this week's position:
Trade entry - original position: 14.90 credit
Downside put roll Friday: 6.95 debit
Downside put roll today: 4.95 debit
Debit to close position today: 5.95 debit
Loss on position: (295.00) plus commissions. Net loss including commissions: $315.
Next trade entry will be Thursday, April 18. Trade entry recommendations will be posted Wednesday.