Just a real quick update. Expiration week this month has been absolutely nuts for me so sorry for the lack of pictures. I’ll do an update later in the week with pics.
RUT was good to us Monday and the March 55 trade gained about $1500 and was up $300 by market close on Monday. Today we gapped up and then pulled back and chopped around in a range a good part of the day. This allowed both the short options to drop in value and for me to do a little scalping. I ended up wiggling out of the trade for a profit in the 1200-1300 range. I’ll get the exact #’s later in the week. I’m glad I got out though as at the end of the day RUT took off again…. UNBELIEVABLE! If RUT holds this trend, we’ll need to schedule a RUT 1000 party for sometime in mid July.
The April 55 day is getting slammed. In general when we enter this trade we want the market to go up, but not this far up. About 50 points up is perfect but once we start to exceed 60 points, it becomes a problem unless you hedged the trade with calls on entry which we did not. Right now the trade is down 1600 and is due for another roll at 680. Since he move was so vigorous and IV is so low, we are down more than expected at this point. I am not trading tomorrow so if RUT continues up tomorrow, I’ll have an order in to buy calls to cut delta if RUT continues up and deal with the roll on Thursday.
Also I entered the Method 1 today, bought a 660/680/700 iron butterfly and I entered the method 15, bought a 610/660/710 put butterfly. I’ll get pictures as soon as I get a chance.
That’s it for now. Make it an awesome day!