Wow, huge up day on RUT last Friday, that makes 80 points in 18 days!
I am still in the March 55 day trade but it is dangerously close to my max loss number of $2000. To help deal with the price move I am currently over capitalized in the trade. Some of this capitol came from the reserve but much of it came from when I pulled off the March Method 1 trade earlier in the week. Friday I rolled the 540 to 550 and added 2 – 640/670/700 butterflies. I feel that it is fine to put extra money in the trade as long as you keep your max loss the same. So right now there is $11510 in the trade and it is down $1750. We got 10 days left to go, let’s see if RUT will give us a break this week so we can stay in the trade. Position is below:
The March method 1 was closed last week for a loss of$803, slightly over max loss.
The March Method 15 is still going. As of Friday close it was down near $900. Max loss is $1400 so this trade is still ok, not great but ok. Adjustments for the day were to remove the 640 butterfly and add 2 – 570/600/630 butterflies: Position is below:
As far as the April trade, I entered the last 1/3 of the trade on Friday. So far this is going pretty much as planed. Now what we’re hoping for is this move to retrace and get back under the tent. If RUT decides to keep going we’ll need to start adding calls on the upside to cut delta but for right now, we wait.
Position is currently down $900 and is shown below: