Paper Trades: ES/GOOG/ZB for 23 Dec 2010

by Tom Nunamaker on December 23, 2010

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The markets are in slumber mode, yet the bonds moved lower this morning and I saw a healthy profit and morphed the position to a riskless butterfly.

Santa is coming to town!

Santa is coming to town!

(Remember: It’s not really riskless.. you’re just playing with the house’s money now!).

GOOG is our problem child. Price action seems to be weak (probably isn’t helped with the Holiday Season). It looks like it could be topping out. Since our ES and ZB positions are now riskless/marginless, the GOOG margin seemed heavy to me. To make it easier to get through the Holidays, I converted the position to a bearish ratio/vertical position. If the market sells off now (it’s a bit overdue don’t you think?), we’re in good shape with GOOG.

Portfolio Overview

Starting Margin: $18,794
Current Margin: $13,212 (GOOG trade. ES/ZB are both riskless)
Profit +$1,218 (+6.48% on original capital)
Days in Trade: 3

These are PAPER TRADES ONLY! DO NOT USE LIVE CAPITAL FOR THESE TRADES! This is for instructional purposes ONLY! You’ve been warned!

Download PowerPoint slides of the entire trade history, charts and trading rationale

GOOG Vertical Spread

GOOG Vertical Spread

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