10PercentPerMonth.com - February 2010 Trade Details

IWM* Feb10 56/57 Put Spread was sold for a credit of $0.07.
The margin requirement for this position was $0.93 per spread.
The position expired worthless resulting in a 7.5% profit!

RUT Feb10 560/570 Put Spread was sold for a credit of $0.72.
The margin requirement for this position was $9.28 per spread.
The position expired worthless resulting in an 7.8% profit!

SPY* Feb10 98/100/112/114 Iron Condor was sold for a credit of $0.20.
The margin requirement for this position was $1.88 per spread.
The position expired worthless resulting in a 10.6% profit!

DIA* Feb10 94/96 Put Spread was sold for a credit of $0.12.
The margin requirement for this position was $1.88 per spread.
The position expired worthless resulting in a 6.4% profit!

QQQQ* Feb10 40/42 Put Spread was sold for a credit of $0.14.
The 40/42 Put Spread was bought back for a debit of $0.44
Feb10 40/41 Put Spread was sold for a credit of $0.08.
The margin requirement for this position was $1.86 per $2 spread.
The 40/41 Put Spread expired worthless resulting in a 7.5% net loss!

Average profit for the month is 5.0%. A $20,000 investment would have returned $1,000.

* on autotrade

A special note on this month's trade:
We had to close out our 40/42 QQQQ position as the market continued to head lower without any signs of slowing down. We opened up the Call Spread for the SPY position, completing the condor, due to good pricing. We wanted to do the same for the other positions but the risk outweighed the profit potential. It turned out to be a good decision as the strikes we were looking at ended up In The Money. Sometimes it is better to not open a trade at all, than to force a trade and lose.