Alas, the move down this morning was just too much for the September method 3 trade, which is a bummer because I’m fairly certain we will bounce at RUT 700.
I was working on getting out of this all morning and finally got everything closed. I ended up exceeding my loss number because I was unable to get filled at mid prices which can happen in these situations.
Loss the m3 trade was $1508, max loss is $1000. To compensate for this and protect the account principle, I am not trading the Sept method 15 trade and I am taking the extra $508 loss off the allowable loss on the method 15 trade and applying remaining $692 allowable loss for the m15 toward the 55 day trade. This increases the max loss on the 55 day to $2192.
Speaking of the Sept 55 day trade, yesterday, I wrote that I added a 780 put butterfly. This was incorrect. If you look at the picture, you can see I added a 770 put butterfly.
Today, I sold the 800 put butterfly and rolled it down to a 750 put butterfly. The position is currently down around $400 and is shown below:
OK, that’s it for now.
Make it an awesome weekend!