Monthly Report for June +11.3% / $53,216.50

Well even a blind squirrel occasionally finds a nut. I finally broke my goal of 10% a month. Ultimately this is where I want to be as a goal so I’m really happy to finally make my first month.

This month started off well with long term iron condors and short term calendars and butterflies. I continued to milk money out of the OIL cow and be irritated by all of those folks complaining about sky high prices but not willing to get off of their butts to do something about it.

The Insane Money trading team did fantastic turning in a great month in a difficult market and the new folks are having lots of ‘AH HAH’ moments and turning profitable. If you are interested in joining please click here. Its $100 a month (alls funds go back into InsaneMoney.com and used to support the hosting, software, weekly online meetings, new traders, and the message board) and you can expect to get 10 to 20 new trades a month with open discussions on adjustments, techniques, and how to improve. Skill levels range from serious beginners to experts trading big size.

Trade Record

34 trades, 27 wins, 7 losses = 4-to-1 win / loss ratio

avg $ per win: +2,491 avg $ per loss: -2,007

avg % per win: +22.8% avg % per loss: -36.1%

Excellent win / loss ratio, good average win dollar to average loss dollar. My average percent loss was much higher than my average percent gained so I’m a little concerned about that and will be watching it closely.

Summertime is coming and the already the tougher low volume markets are taking a toll on me. If it continues I will likely size down and prepare for the summer vacations.
Update on Goals for 2008

Health - I get the “FAT BASTARD” award for gaining weight during the month. Started playing softball and feel like I’m crippled for three days afterward. My wrists are about the same after going to a neurologists for some fun tests and the doctors want to cut me open. That just doesn’t sound like fun to me!

Give $25,000 to charity - We have given away $8,000 given so far this year.

Produce $250,000 in personal income (outside of my business and retirement) - Soon to exceed our target.

Pay off $125,000 of personal debt - So far we have paid down $42,000 in personal debt.

Study for and receive my Series 65 (Investment Advisor) license - Fail. I know, I know I have to stop trading long enough to get my license. Sheez!!

Insanemoney.com - Is completely rockin and thriving with lots of subscribers and over 300 members in the forums section ( http://www.insanemoney.com/forums/ ). If you haven’t joined and you’re interested in option trading you should do so. Its free and there are lots of great traders sharing their knowledge there. MdrNate completed the final move to a new server and everything went smoothly. Thanks MdrNate!

Raise $1,000,000 of investor funds - Haven’t started yet. I need to complete my license first.

Make 3% a month in options - Check. I’m thinking about moving this up to 5% a month.

Lessons learned:
1) Iron Condors in the RUT (low prob and high prob) did well. Adjustments were minimal and I liked trading the July contracts starting in May. Very smooth with little margin required.

2) ThinkorSwim granted me portfolio margining and I spent a good part of this month learning that system and understanding the implications of adjustments. Its very cool and well worth the paperwork. I’m especially impressed by the fact that they incentive me to reduce my delta risk through adjustments and release additional capital to me to trade.

3) I had a bullish technical outlook on JRCC and sold the 40 naked puts against the position. Did well for awhile and then the stock reversed on me. In order to neutralize my deltas I went ahead and sold the 50 naked calls doubling the use of my margins and increasing my capital. Of course you know what happened next right!?! Yep, JRCC shot up again. The lesson to learn here that I should be careful about adjusting to neutralize my deltas when I have such a strong price direction opinion. JRCC ended up working out for me but not without a lot of management and two very busy days.

4) Be careful trading options that are thin and know that as you approach option expiration the market makers see you coming and will extract tons of premium for their service and your late arrival. Do whatever you can to not be trading front month options on expiration day. DOH!

Plans for July
I will take most of July to sharpen my futures trading skills and hopefully travel a bit to meet with some other traders. I will be gone for two weeks with a whole week without internet! Scary!

All the best,

Mojo

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