Last Monday I have opened the first straddle for September 2015. At that day the EuroStoxx 50 Index was 3,550 points. During the week there were many concerns about the Greek debt crisis. Politicians from Germany, France and many other countries are still negotiating about the repayments. Greek default is still possible but nobody seems to know anything.
That is the reason why the European stock market is still in high volatility and the price swings are heavy up and down. After closing on 3,450 last friday the ESTX50 opened more than 100 points higher on monday. That was the time I sold the first butterfly. During the last 5 days the market ranges between 3,580 and 3,650 points and strong movements of more than 2 % in a day.
ESTX50 closing on Friday was at 3,621 points. VSTOXX closed at 26,7 points.
The option positions do trade with a book value of 3,109 EUR now, which is 152 EUR up. But still, even if the book value is higher now, that only effects the outcome if I was forced to close the position right now and buy back the options.
For now there is nothing to do. Next week will be crucial. If the ESTX50 will close above 3,650 points in a day I will sell the next put option with the strike 3,750 points.