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Trade recommendations closed for June 2007 expiration.

1. SPY Double Diagonal initiated on 26 Apr 2007

26 Apr:: Initiated position for $0.10 credit
31 May: Closed position for $0.05 debit

P&L: +$5 per trade
Number of trades entered for mock account: 2

2. RUT Iron Condor initiated on 14 May 2007

14 May: Initiated position for $2.00 credit
31 May: Rolled call spread for $0.70 debit
14 Jun: Expired worthless

P&L: +$130 per trade
Number of trades entered for mock account: 2

Comment

We had a rather light month for June. In the high volatility environment, we trade lightly and carefully. There is no clear indication on where the market is heading to at the moment. Will the market continues its bull-run or will it go sideway from here? We can only wait to find out. As we wait for a clear indication of the trend, we will continue to trade lightly, maybe 2 or 3 positions per month instead of the usual 4 to 5 that we do normally. We rather have less trades that make money than to have more trade that lose money. Furthermore, the market tends to make massive moves in either direction in recent times. As such, unless we have a very low risk trade, we will stay on the sideline for the moment.

Currently we have two iron condors for July. These two condors are looking pretty good at the moment and are already showing profits. We may be able to find one more good risk/reward condor soon. We are stalking a few possibilities. However, time is running out for July options. It'll be either these few days or we'll be looking for August's trades.

As we close our June's positions, we just closed our first year of trades. We have achieved out target of having an annual returns of nearly 30%. We will try to beat this 30% mark for the next 12 months. That will be our target for the next 12 months. In the past 12 months, we learnt a few precious lessons from the market. The most costly lessons would be not to over trade. We did that last month for May and was killed badly. It showed us that the market can do whatever it wants anytime it wants even though the probability is really low. We will bear this lesson in mind as we trade the next 12 months. We hope to bring you, our valued subscribers, a better next 12 months.

Yours sincerely,

Gary

Founder, Head Trader of MarketNeutralOptions